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  • Travel Entities Agree to Proposed Class Action Settlement Regarding Travel Insurance Practices

A class of plaintiffs is asking a Florida federal court to approve a proposed $26 million settlement to resolve claims against Delta Air Lines Inc., JetBlue Airways Corp., American Airlines, United Airlines, Alaska Airlines and Amtrak. The proposed settlement brings together claims asserted regarding travel insurance practices by these entities in nine separate cases pending in Florida, California, New York, Washington, and the District of Columbia, and is proposed to provide all class members with the opportunity to obtain monetary relief in the form of cash payments.

Plaintiffs have alleged violations under state consumer-protection laws and common-law claims against each of the defendants for: (1) allegedly receiving undisclosed payments from AGA Service Company (d/b/a Allianz Global Assistance) (“AGA”) in connection with the sale of travel insurance policies to defendants’ customers; or (2) defendants’ alleged sale of its customer data to AGA in alleged violation of defendants’ privacy policies.

After years of contentious litigation in several of the class actions, plaintiffs have now filed a motion to request that the Court approve the proposed settlement, to which the defendants have agreed to. The proposed settlement includes an agreement to a $26 million non-reversionary common fund and injunctive relief requiring additional disclosures regarding the fact that the defendants receive compensation from AGA, the insurance producer offering the trip insurance at issue for each of the defendant travel entities.