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Latest Update on AA Equity Case
Posted On: Jul 06, 2017
In May, we provided you an update on the American Airlines equity distribution case indicating that the United States Court of Appeals for the Ninth Circuit had issued a decision and opinion affirming the decision of the District Court for the Northern District of California in the case of Demetrius v. TWU, dismissing claims that the method adopted by TWU to distribute equity in American Airlines gained in during bankruptcy violated TWU’s duty of fair representation. Last month, we notified you that on June 5, plaintiffs in the case filed papers asking that the Court of Appeals to reconsider its decision.
Yesterday, we learned that the Ninth Circuit Court of Appeals rejected the plaintiffs’ petition for rehearing in the equity distribution case, with none of the judges in support of rehearing.
Plaintiffs now have until October 3 to ask the U.S. Supreme Court to grant a writ of certiorari and to hear the case. If that is either not filed, or filed and rejected, the case will be over. We must wait for that process to complete before any fund distribution can begin.