Travelmole Q&A: Charles Tompkins, partner at Cohen, Milstein, Hausfeld & Toll

Charles Tompkins is a partner at Cohen, Milstein, Hausfeld & Toll, the Washington law firm helping passengers seek compensation from BA and Virgin over the price-fixing of fuel surcharges.

He spoke to Travelmole about the class action lawsuit.

Q. What stage are you at with the lawsuit?

A. The International Air Transportation Surcharge Antitrust Litigation is a class action lawsuit currently pending before the Honorable Judge Breyer in the Northern District of California. Cohen Milstein Hausfeld & Toll and Cotchett Pitre & McCarthy have been appointed by the Court to act as co-lead counsel of the litigation. A consolidated amended complaint alleging claims on behalf of both domestic and foreign purchasers of passenger tickets from British Airways and Virgin Atlantic Airways has been filed. Virgin has admitted participation in the cartel to government authorities and has been granted conditional immunity from governmental fines in the
UK and amnesty in the US and is cooperating with both governments and private plaintiffs as a result. BA has entered a guilty plea in the US and is paying $300 million in fines to resolve its criminal liability for its involvement in both the air passenger and the related air cargo cartel. In addition, BA has reached an agreement with the UK’s Office of Fair Trading to pay £121.5 million as a result of its price fixing conduct in the air passenger industry.

Q. How many people are you expecting to be part of the lawsuit? How many from the UK?

A. The US class action alleges claims on behalf of purchasers who bought tickets from either BA or Virgin between May 2004 and September 2006. Acccordingly, there are potentially thousands of individuals worldwide who purchased tickets that were the subject of the price-fixing conspiracy.

Q. Are the airlines cooperating?

A. Virgin Atlantic is cooperating with both US and UK government officials. In addition, as a result of its grant of conditional immunity from fines in the UK and amnesty in the US, it is cooperating with the private claimants in the US class action case.

Q. If they don’t cooperate, will you take action against the individuals?

A. The litigation by private claimaints currently involves no individuals from either company. However, until a global settlement is reached, there is the potential for individual liability, which may be pursued in appropriate circumstances. The individuals facing legal action as a result of their involvement in the price-fixing conspiracy are not named individually in the class action lawsuit pending in the US. Rather, they are the subject of action by government authorities. The violations alleged carry with them the potential for significant prison sentences and monetary fines.

Q. What is the likely time scale of the lawsuit?

A. Most cases of this nature do not go to trial, but rather are settled by the parties. While this can, at times, take years, resolution in this case should be hastened by the fact that both airlines have already admitted their participation in the cartel and by Virgin’s cooperation. Cohen Milstein intends to bring this action to conclusion, by either trial or settlement, within the year.

By Bev Fearis