Federal Judge Rejects $34.1 Million Legal Fee Request in JetBlue-Spirit Merger Case

Keywords: JetBlue-Spirit merger, antitrust lawsuit, legal fees, Massachusetts, Judge William Young, private attorneys, US$3.8 billion merger, government antitrust case, Cooley LLP, Paul Weiss LLP, Joseph Alioto, private antitrust actions

A Federal Judge in the District of Massachusetts has denied a $34.1 million legal fee request made by private antitrust attorneys who opposed the $3.8-billion JetBlue-Spirit merger. Judge William Young ruled that the attorneys were not entitled to the fees as prevailing parties, given that their private lawsuit was dismissed as moot following the government’s successful challenge to the merger.

JetBlue and Spirit, represented by Cooley LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP, argued that the private attorneys were merely “piggy-backing” on the government’s antitrust case, which had led to the airlines abandoning the merger plans. The airlines emphasized that the private lawsuit did not go to trial and had no direct influence on the outcome.

Joseph Alioto, one of the private attorneys involved, criticized the ruling, stating it could set a dangerous precedent by discouraging private antitrust actions in the future. He maintained that their lawsuit had contributed to JetBlue and Spirit’s decision to abandon the merger rather than pursue an appeal against the government’s victory.

The decision underscores the complex dynamics between private antitrust enforcement and government actions in large corporate mergers, especially when multiple parties challenge such deals. While the ruling is a setback for the private attorneys, it highlights the dominant role of government agencies in regulating antitrust matters.

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