SABR stock: January 7, 2015 | UPDATE 2-U.S. judge narrows US Airways pricing lawsuit vs Sabre

 May 15, 2022

UPDATE 2-U.S. judge narrows US Airways pricing lawsuit vs Sabre

By Jonathan Stempel, Jeffrey Dastin

NEW YORK, Jan 7 (Reuters) - A federal judge has significantly cut back US Airways Inc’s $1.45 billion lawsuit accusing airfare information distributor Sabre Corp of charging inflated fees and suppressing competition in how flights were displayed.

US Airways had sought under federal antitrust law to recoup three times the $317 million to $482 million it claimed to lose in overcharges and profit from Sabre’s alleged illegal conduct over nearly seven years, from April 21, 2007 to March 31, 2014.

But in a decision on Tuesday night, U.S. District Judge Lorna Schofield in Manhattan said US Airways, now part of American Airlines Group Inc, may pursue damages claims covering only from Feb. 23, 2011 to Oct. 30, 2012, when Sabre and American settled similar litigation.

The judge said she will explain the reasons for her decision in a later opinion.

In a regulatory filing, Sabre estimated the decision reduced US Airways’ potential recovery of “single damages” by more than 75 percent. This indicated a maximum potential award of less than $362 million, after tripling.

Sabre said it will fight the remaining claims. The Southlake, Texas-based company has said it set aside $347 million for its settlement with American. AMR Corp, which was American’s parent, merged with US Airways in December 2013.

American spokesman Matt Miller said the Fort Worth, Texas-based company is pleased that US Airways may proceed toward a possible trial.