American Airlines to settle $139m legal fee dispute after $1 verdict

American Airlines has reached a tentative settlement with flight booking company Sabre in the airline’s fight to recover more than $139m 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 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 $139m. 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.<br/>