JetBlue Airways and Spirit Airlines are contesting a substantial legal fee request from law firms that sought to block their $3.8 billion merger, which was ultimately abandoned in March. The airlines argue that the lawyers’ efforts were largely dependent on the U.S. Justice Department’s separate legal action against the merger.
The airlines’ legal teams, Cooley and Paul, Weiss, Rifkind, Wharton & Garrison, assert that the private plaintiffs’ case was not successful, citing a ruling that dismissed the case as moot. The plaintiffs, represented by San Francisco’s Alioto Law Firm, are seeking up to $34.1 million in fees, claiming their early lawsuit contributed to the merger’s collapse.
The plaintiffs argue that their litigation played a significant role, given that they initiated their case before the government. They contend that the airlines’ attempt to undermine private antitrust enforcement contradicts the intent of the Clayton Act, which includes provisions for rewarding private litigants.
In related legal news, other firms are also in the spotlight over fee disputes. Three U.S. firms are defending a $217 million fee request for a settlement with Google over data privacy issues, while Purdue Pharma’s bankruptcy case has seen top partners charging $2,375 per hour amid ongoing legal battles.
