JetBlue Flyers Denied $34M in Legal Fees After Merger Blocked

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JetBlue Flyers $34M Legal Fees Denial

Airline passengers who opposed JetBlue Airways Corp.’s plan to merge with Spirit Airlines Inc. have been denied their request for $34 million in legal fees. A Massachusetts federal judge ruled Thursday that the passengers were not considered “prevailing parties” in their antitrust suit, despite their claims of contributing to the U.S. Department of Justice’s successful challenge that blocked the $3.8 billion merger.

U.S. District Judge William G. Young rejected the passengers’ argument that they had “substantially contributed” to the DOJ’s separate antitrust case. “In no sense were any of the plaintiffs a ‘prevailing party’ in this action,” the judge wrote in his decision.

JetBlue Flyers $34M Legal Fees Denial : Flyers Filed First, DOJ Followed

The passengers were the first to challenge the JetBlue-Spirit merger in November 2022, arguing it would reduce competition, raise prices, and cut flight options. Four months later, the DOJ launched its own antitrust lawsuit, which ultimately resulted in an injunction halting the merger. While the passengers’ litigation was stayed, the government’s case proceeded to trial, leading to the airlines abandoning their merger in 2024.

Legal Fees Request Rejected

The plaintiffs sought $34 million in legal fees, claiming they played a significant role in shaping the government’s case, particularly by offering evidence of harm to consumers. However, the airlines argued that the private litigation was merely riding on the coattails of the DOJ’s victory, and that the plaintiffs’ efforts were not substantial enough to warrant recovery.