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American Airlines to settle $139 million legal fee dispute after $1 verdict
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American Airlines to settle $139 million legal fee dispute after $1 verdict
Nov 19, 2024 9:12 PM

Nov 18 (Reuters) - American Airlines ( AAL ) has reached

a tentative settlement with flight booking company Sabre

in the airline's fight to recover more than $139

million in legal fees after winning just $1 in damages at a 2022

trial.

In a filing on Saturday, American and Sabre told U.S.

District Judge Lorna Schofield in Manhattan that the companies

agreed in principle to resolve their fight over fees in the

13-year-old case.

The proposed terms were not disclosed in the court filing.

Sabre declined to comment on Monday, and American Airlines ( AAL ) did

not immediately respond to a request for comment.

Sabre was sued in 2011 by US Airways, which later merged

with Fort Worth, Texas-based American.

The lawsuit accused Sabre of harming competition in the

flight-booking market and charging excessive fees. A jury in

2022 found Sabre had acted unlawfully to stifle competition, but

also that US Airways' contract with Sabre did not constrain

trade as the airline alleged.

The jury awarded American $1 in damages, and Sabre, which

denied wrongdoing, did not appeal. American then asked the court

to order Sabre to cover its legal fees totaling $139 million.

Schofield ruled last year that American was entitled to seek

reasonable legal fees after its nominal win of $1. The judge

said the federal antitrust law at issue allows a prevailing

plaintiff to recover fees.

Sabre was due to respond this week to American's legal fee

bid. Sabre and American asked the judge to push the deadline to

December to allow the companies to finalize their deal.

The case is US Airways Inc v. Sabre Holdings Corp, U.S.

District Court for the Southern District of New York, No

1:11-cv-02725-LGS.

For plaintiff: Andrew Frackman of O'Melveny & Myers, and

Paul Yetter of Yetter Coleman

For defendant: Boris Bershteyn and Steven Sunshine of

Skadden, Arps, Slate, Meagher & Flom

Read more:

Legal Fee Tracker: American Airlines ( AAL ) presses $139 mln fee

bid after $1 verdict

After $1 American Airlines ( AAL ) antitrust win, O'Melveny wants

$139 million in legal fees

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