The lawsuit concerns AAG’s practice for calculating profit sharing awards under its Profit Sharing Plan. AAG credits certain forms of non-military leave, such as jury duty leave and bereavement leave, in calculating profit sharing awards under the Plan. But AAG does not credit military leave to serve in the uniformed services or impute it in employees’ earnings. As a result, Plaintiff and Class members have received smaller amounts of profit sharing awards than they would have received had their military leave been credited under the Plan and they were able to defer amounts into their defined contribution plan accounts. This lawsuit also concerns American’s practice of not paying pilots who take short-term military leave at least the difference between their military pay and their airline pay, while paying pilots who took other, comparable forms of leave from employment, such as jury duty leave and bereavement leave.

The lawsuit alleges three claims. First, Count I alleges that AAG breached USERRA’s requirement to treat military leave no less favorable than other forms of leave by failing to credit military leave when the Plan credits other, comparable forms of leave. Second, Count II alleges that AAG breached the terms of the Plan by failing to credit military leave. And third, Count III alleges that American breached USERRA’s requirement to treat military leave no less favorable than other forms of leave by failing to pay pilots at least the difference between their military pay and their airline pay, while paying pilots who took other, comparable forms of leave from employment.

The Court has certified the claims in this lawsuit on behalf of a class and subclasses consisting of current and former American Airlines pilots from 2013 through the present as follows:

(a) For Count I, the court certifies a subclass under Rule 23(b)(2) consisting of current American Airlines, Inc. pilots who presently serve in the military and who: participate at some point in the AAG Global Profit Sharing Plan since its inception on January 1, 2016 through the date of judgment in this action; are employed in the United States or are a citizen or national or permanent resident of the United States and employed in a foreign country while participants in the Plan; took or take short-term military leave in a year during which they were entitled to receive an award under the Plan; and were not credited or imputed earnings for this short-term military leave.

(b) Also for Count I, the court certifies a subclass under Rule 23(b)(3) consisting of former pilots of American Airlines, Inc. or pilots of American who are former members of the military who: participated at some point in the AAG Global Profit Sharing Plan since its inception on January 1, 2016 through the date of judgment in this action; were employed in the United States or were a citizen or national or permanent resident of the United States and employed in a foreign country while participants in the Plan; took short-term military leave in a year during which they were entitled to receive an award under the Plan; and were not credited or imputed earnings for this short-term military leave.

(c) For Count II, the court certifies a subclass under Rule 23(b)(2) consisting of those current American Airlines, Inc. pilots who presently serve in the military and who: participate at some point from January 1, 2016 through the date of judgment in this action in the AAG Global Profit Sharing Plan and are or were eligible to participate in the American Airlines, Inc. 401(k) Plan for Pilots and are subject to taxation in the United States; are employed in the United States or are a citizen or national or permanent resident of the United States and employed in a foreign country while participants in the AAG Global Profit Sharing Plan; took or take short-term military leave in a year during which they were entitled to receive an award under the AAG Global Profit Sharing Plan; and were not credited or imputed earnings for this short-term military leave.

(d) Also for Count II, the court certifies a subclass under Rule 23(b)(3) consisting of those former American Airlines, Inc. pilots or American pilots formerly in the military who: participated at some point from January 1, 2016 through the date of judgment in this action in the AAG Global Profit Sharing Plan and are or were eligible to participate in the American Airlines, Inc. 401(k) Plan for Pilots and are subject to taxation in the United States; were employed in the United States or were a citizen or national or permanent resident of the United States and employed in a foreign country while participants in the AAG Global Profit Sharing Plan; took short-term military leave in a year during which they were entitled to receive an award under the AAG Global Profit Sharing Plan; and were not credited or imputed earnings for this short-term military leave.

(e) For Count III, the court certifies a subclass under Rule 23(b)(2) consisting of all current American Airlines, Inc. pilots who presently serve in the military and took or take short-term military leave while employed at American at any time from January 1, 2013 through the date of judgment in this action and were not paid for that leave equal to what they would have received had they taken leave for jury duty or bereavement.

(f) Also for Count III, the court certifies a subclass under Rule 23(b)(3) consisting of all former American Airlines, Inc. pilots or American pilots formerly in the military who took short-term military leave while employed at American at any time from January 1, 2013 through the date of judgment in this action and were not paid for that leave equal to what they would have received had they taken leave for jury duty or bereavement

Excluded from the class outlined above are those American Airlines, Inc. pilots responsible for administering the AAG Global Profit Sharing Plan and those American pilots who reached individual settlements with or judgments against AAG regarding inadequate profit sharing or against American for failure to compensate short-term military leave under the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. § 4301 et seq.

This litigation was initially filed on September 19, 2018. Defendants filed a Motion to Transfer Venue on January 22, 2019, which the Court denied on April 2, 2019. Defendants then filed a Motion to Dismiss the Amended Complaint on April 9, 2019, which was denied in part and granted in part on June 18, 2019.

Plaintiff filed a Second Amended Complaint and the Motion for Class Certification on February 27, 2020. Defendants moved to dismiss Count II of the Second Amended Complaint for lack of subject matter jurisdiction on March 20, 2020, which is the count that covers the breach of contract claim with respect to the Profit Sharing Subclass. The Court denied Defendants’ motion to dismiss Count II on May 5, 2020.

From September 10, 2020 to August 10, 2021, the Court stayed the case pending a decision in the United States Court of Appeals for the Third Circuit in Travers v. FedEx Corporation, No. 19-6106 (E.D. Pa.).

After a hearing, the Court certified the Class over Defendant’s opposition on October 8, 2021. Defendants filed a Motion to Modify the Class Definition on January 28, 2022, which the Court granted on April 6, 2022. The Court subsequently vacated this Order and again modified the definition of the Class and the Subclasses on May 3, 2022.

The parties completed fact discovery and expert discovery. The parties filed their motions for summary judgment on July 29, 2022. Defendants moved for summary judgment on all counts while Plaintiff moved for partial summary judgment on liability as to Count II and Defendants’ affirmative defenses of laches, estoppel and waiver.

On November 2, 2022, the Court granted Defendants’ Motion for Summary Judgment.

Plaintiff filed a Notice of Appeal on December 1, 2022. The case is currently on appeal in the United States Court of Appeal for the Third Circuit. Plaintiff’s opening brief is due on March 2, 2023.

The Third Circuit Court affirmed the lower Court’s judgment on the breach of contract claim but reversed and remanded to the District Court on the USERRA claim on May 21, 2024.

Third Circuit Court Decision - May 21, 2024

Order Granting Defendants’ Motion for Summary Judgment – November 2, 2022

Court Decision Modifying the Class Definition – May 3, 2022

Court Decision Granting Class Certification – October 8, 2021

Court Decision Denying Motion to Dismiss – May 5, 2020

Second Amended Complaint – February 27, 2020

Court Decision on Motion to Dismiss – June 18, 2019

Court Decision Denying Motion to Transfer – April 2, 2019

Amended Complaint – January 7, 2019

Class Action Complaint – September 19, 2018