Private jet service JetSmarter agrees with $ 3 million arbitration settlement
JetSmarter has entered into an agreement to settle claims by some members that the company is engaged in unfair and misleading practices, according to a settlement letter.
The private jet company, which once had over 8,000 members and a self-appointed valuation of over $ 1 billion, has been the target of more than a dozen lawsuits and claims by members stating that the company failed to deliver services promised in their membership, JetSmarter was the subject of a CNBC survey which also raised questions about their security procedures and passengers.
The agreement is provisional and remains the subject of a final approval negotiation In June, more than 1[ads1]0,000 of the company's current and former members may be eligible to participate as a class member, covering customers who were members between September 5, 2014 and June 19, 2018.
As part of the settlement, JetSmarter will create a $ 3 million fund to pay members, who may also be eligible for free membership and flight credits.
In a statement as part of the settlement, JetSmarter said it "strongly denies these allegations and believes that the facts show that it always complied with the membership agreement and all applicable laws. "The company added that it agreed with the settlement" because it wants to put the case behind it and continue to serve its members as well as possible. "
JetSmarter did not immediately respond to further comment.
The divorce settlement will not terminate the company's legal action. More than a dozen members have filed lawsuits against the company in New Jersey, California and other states. They plan to resign from the settlement and continue to pursue their litigation.
"Our company has reviewed the proposed training assignment and believes that it does not provide adequate compensation for the losses of JetSmarter members," said Bruce Baldinger, a New Jersey lawyer who represents several JetSmarter members who have legal proceedings.
But the trial faces challenges in court, since JetSmarter's membership agreement states that any disputes with the company must be settled in arbitration.
