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Thursday, August 22, 2019

Delta Air Lines alleged to use deceptive practices when selling trip insurance to customers

Lawsuits

By Noddy A. Fernandez | Sep 29, 2018


WEST PALM BEACH, Fla. (Legal Newsline) – A Florida woman alleges an airline receives kickbacks from selling trip insurance despite not having a license to broker insurance.

Judith Marilyn Donoff, on behalf of herself and all others similarly situated, filed a complaint on Sept. 17 in the U.S. District Court for the Southern District of Florida, West Palm Beach Division against Delta Air Lines Inc. over alleged violation of Florida Deceptive and Unfair Trade Practices Act.

According to the complaint, the plaintiff alleges the defendant deceptively presents the charges for trip insurance it sells through a third-party vendor. 

"On its website, and throughout the online process of purchasing a flight ticket and trip insurance, Delta leaves the consumer with the false impression that the charge for trip insurance is a pass-through fee, i.e., a fee that is passed on to another entity and for which Delta has no financial interest," the suit states.

"In reality, and despite lacking a license to broker insurance policies, Delta retains or ultimately receives an undisclosed kickback from every policy sold," the suit states.

The plaintiff holds Delta Air Lines Inc. responsible because the defendant allegedly "appreciated, accepted and retained this benefit, as it garnered substantial profits by virtue of its insurance kickback scheme," the suit states.

The plaintiff requests a trial by jury and seeks judgment for general, actual, compensatory and exemplary damages; costs of suit; pre- and post-judgment interest; and such other relief as the court deems just and proper. She is represented by Scott B. Cosgrove, Alec H. Schultz, John R. Bryne and Jeremy L. Kahn of León Cosgrove LLP in Coral Gables, Florida.

U.S. District Court for the Southern District of Florida, West Palm Beach Division case number 9:18-cv-81258-DMM

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Leon Cosgrove, LLP U.S. District Court for the Southern District of Florida West Palm Beach Division

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