US Airways 2007 Annual Report Download - page 30

Table of Contents
Item 3. Legal Proceedings
On September 12, 2004, US Airways Group and its domestic subsidiaries (collectively, the "Reorganized Debtors") filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Virginia,
Alexandria Division (Case Nos. 04-13819-SSM through 03-13823-SSM) (the "2004 Bankruptcy"). On September 16, 2005, the
Bankruptcy Court issued an order confirming the plan of reorganization submitted by the Reorganized Debtors and on September 27,
2005, the Reorganized Debtors emerged from the 2004 Bankruptcy. The Bankruptcy Court's order confirming the plan included a
provision called the plan injunction, which forever bars other parties from pursuing most claims against the Reorganized Debtors that
arose prior to September 27, 2005 in any forum other than the Bankruptcy Court. The great majority of these claims are pre-petition
claims that, if paid out at all, will be paid out in common stock of the post-bankruptcy US Airways Group at a fraction of the actual claim
amount.
On February 9, 2007, passengers Daphne Renard and Todd Robins filed a class action suit against US Airways in San Francisco
Superior Court. The complaint, which was later amended to include only Robins as a lead plaintiff, alleges that US Airways breached its
contract of carriage by charging additional fares and fees, after the purchase of tickets on the usairways.com website, for passengers
under two years of age who travel as "lap children," meaning that the child does not occupy his or her own seat but travels instead on the
lap of an accompanying adult. The named plaintiffs allege that he and his wife purchased international tickets through the website for
themselves and a lap child. Plaintiffs allege that after initially receiving an electronic confirmation that there would be no charge for the
lap child, they were later charged an additional $242.50. The complaint alleges a class period from February 9, 2002 to the present. We
were served with an amended complaint in early March 2007 that continued the same allegations, but dropped plaintiff's wife as a class
representative. On May 1, 2007, US Airways filed an Answer to the complaint and also asked the court for a "complex case" designation,
which the court granted on May 11, 2007. On September 25, 2007, the parties reached a settlement for an immaterial amount. That
agreement must be approved by the court in order to become final.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders during the fourth quarter of 2007.
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