Free Drinks worth $58 million.
The ABA Journal reported that an attorney in Chicago who made a claim against Southwest Airlines pertaining to a change or modification to a free drink coupon policy which resolved the lawsuit at a value up to almost $60 million.
According to ABA Journal, the class action suit which was filed by Mr. Levitt alleging that Southwest Airlines breached the agreement with their customers pertaining to whether or not the airline would agree to honor $5 drink vouchers without expiration dates. According to the ABA Journal, the settlement is based on an estimate of $29 million to $58 million.
Initially, the drink vouchers were provided to customers who purchased special Business Select seats with the airline.
If this claim were filed in the New Jersey state courts, there also would be an allegation of fraud or consumer fraud. It is not clear whether such allegation was made in this particular case. Under New Jersey law under the Consumer Fraud Act, the petitioners of the class action would be seeking treble damages or basically cancellation of the expiration dates of the coupons.
Southwest Airlines disputed allegations in the case and representatives stated that they were very confident that if the case were litigated, Southwest would have prevailed.
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