April 17, 2025
After exiting its fractional and jet card programs, Volato wants to expand its Vaunt empty-leg program and B2B software despite litigation.
Seven months after it ceased flight operations, Volato is facing multiple lawsuits as it seeks to expand its Vaunt empty-leg program and its role as a B2B business aviation software provider.
In August, Volato entered an agreement with FlyExclusive, allowing its fractional and jet card to transition.
In its Q3 earnings call, FlyExclusive said 178 of 265 jet card customers had moved over.
The latest lawsuit against Volato was filed on April 14, 2025, in the United States District Court Northern District of Georgia, Atlanta Division.
The former top 20 fractional/charter operator is facing lawsuits from fractional ownership and jet card customers.
‘We absolutely deny and will vigorously defend any allegations of fraud against us or our employees’
– Volato Founder and CEO Matt Liotta
Fractional owners allege they paid for shares in aircraft that were never delivered.
There is also pending litigation from an executive search firm that alleges it wasn’t paid for services.
Former employees have alleged Volato violated the WARN Act when it laid off staff.
The most recent filing is from a member of its Insider jet card program.
According to allegations from Braddock Interests, LLC, the plaintiff entered into a membership agreement on May 13, 2024.
Braddock initially funded its Insider account with $200,000.
“Early on in Braddock’s relationship with Volato, Braddock determined that he was dissatisfied with Volato’s service. Accordingly, Braddock decided to part ways with Volato, exercise its termination rights, and receive a refund of the unused funds in its Insider Account,” per the filing.
There was a balance of $181,076.50.
The Insider members promised customers could receive a refund for unused balance within 30 days of exiting the program.
The lawsuit states, “Despite acknowledging receipt of Braddock’s termination notice on August 12, 2024, and indicating that Braddock would receive a refund before September 22, 2024—a date that did not comply with the Agreement in the first place—Volato has failed to issue the required refund to Braddock.”
After continuing to pursue the refund, Braddock received an email from Volato on October 4, 2024.
The email stated:
‘Volato is in receipt of the correspondence regarding your client’s Insider Deposit. The company wishes to acknowledge your communication but is not currently in a position to immediately respond to any specific allegations or issues your communication may raise. This response is not intended to address such allegations or issues and is not and should not be construed as an admission with respect to any allegations your communication may contain. First, Volato sincerely regrets this situation, which was not anticipated. The company has previously communicated with its Insider customers that Volato no longer has flight availability due to its new agreement with flyExclusive. We have also communicated details and options available for Insiders to retain value in their Insider balances with FlyExclusive. While Volato understands that some Insiders may prefer to receive cash refunds of the balances of their Insider Accounts, the company does not anticipate being able to issue such refunds. As stated in its recent public filings, Volato finds itself at risk of being unable to continue as a going concern. It has uncertain future revenue streams and senior secured loans on its limited assets, which do not include any aircraft, significant equipment, or other fungible assets. Given these significant challenges, Volato simply does not anticipate the ability to issue cash refunds of Insider Deposits. As a result, Volato strongly believes that a FlyExclusive flight credit is the best recovery option for its valued Insider program Members to retain value. The FlyExclusive offer has been extended for 60 days. We note that for Insiders with smaller balances, FlyExclusive has indicated that it is willing to work with those customers on a case-by-case basis to find accommodations outside of the previously communicated options. We therefore highly encourage all Insider members to explore a workable option with FlyExclusive, which has significant capabilities and is standing by to provide value to your client. Conversely, we do not believe that litigation against Volato constitutes a viable recovery option. Unfortunately, Volato may be unable to satisfy any judgments eventually obtained by unsecured creditors, including Insider program Members. A FlyExclusive flight credit constitutes a far more certain recovery option for your client, and we hope your client will give that option every consideration.’
READ: Refundable Jet Cards: The good and bad
A lawsuit filed by JSP Investment LLC, James Daniel Sullivan, and Domeyko Taylor Holding Company on January 28, 2025, also in Georgia, alleges the plaintiffs each paid an initial deposit and subsequent payments each over $900,000 for shares in Volato’s HondaJet fractional ownership program.
According to the filing, JSP made its initial $284,700 deposit on March 1, 2024, and paid the balance of $664,720 on May 6, 2024.
Sullivan paid Volato $949,000 through three separate wire transfers on June 22, June 27, and June 28, 2024.
Domeyko entered a similar contract and made the deposit and final payments.
The defendants say they were misled about delivery dates.
Volato explained the delays by texting, “Honda had their tails between their legs for not delivering on time.”
The lawsuit says the three plaintiffs have “never seen the aircraft.”
The filing alleges, “The defendants have caused plaintiffs unnecessary trouble and expense, in that the defendants repeatedly made knowingly false statements concerning the status of the transaction to purchase the aircraft.”
Another lawsuit by defendants Dolce LLC and Mark Sweet, filed in the Florida Southern District Court on November 26, 2024, alleges the plaintiff is owed over $2 million after first agreeing to buy a share in a HondaJet and then later deciding to move to Volato’s Gulfstream G280 program.
The lawsuit alleges, “Despite the agreed upon delivery date of January 15, 2024, the G280 was never delivered to plaintiffs.”
The upgrade to the Gulfstream was made to accommodate Sweet’s father, who passed away.
After much back and forth, John Liotta, brother of Volato Founder and CEO Matt Liotta, wrote to Sweet:
‘The Commercial Team made a decision about your contract that I must pass onto you. The totality of the contract you signed for a 1/8th of a G280 was for $3,400,000. We made a subsequent offer to reduce it to a 1/10th share at $2,600,000.00. After speaking with you, and understanding your situation, you suggested that the Honda Jet was a better fit. The business believes that that a 1/4th share is more in line with your original contract. This contract is for $2,250,000.00- still significantly less than both amounts listed above, but a healthy compromise for us. I have attached the paperwork for this contract here. Please let me know if you have any questions or concerns. To your comment in your email, yes, we expect two planes either at the end of this month or at the beginning of May.’
In addition to what Dolce paid to Volato, the plaintiff says he spent over $130,000 on professional services as part of the anticipated transaction.
READ: Jet It Lesson: What happens when your fractional provider fails?
Jason Pinson’s lawsuit in Georgia, alleging Volato owed $171,797 in unused jet card funds, was dismissed on February 27, 2025, after the two parties reached a confidential settlement.
Wiser Partners LLC’s lawsuit in Ohio’s Southern District alleges it is owed $168,000 to search for a chief marketing officer position with annual compensation of $560,000.
READ: What happens to your jet card and private jet membership deposits?
Matt Liotta tells Private Jet Card Comparisons, “We’ve had success working with parties directly to avoid litigation.”
He says that, so far, more than 80% of its clients have moved to FlyExclusive, and “or we have found some successful outcome.”
Liotta adds, “We absolutely deny and will vigorously defend any allegations of fraud against us or our employees.”
Liotta says of the delivery delays, “There were supply chain issues with the OEMs. That’s well known publicly.”
Liotta says, “Our focus right now continues to be taking care of our customers who were negatively impacted and our creditors. We want to remain a viable business and provide value to the industry via the software we developed.”
The company was recently at a business aviation trade show in New Orleans.
Liotta says it was there to expand the operators in its Vaunt empty-leg program.
Last month, Vaunt announced the addition of JetVia and Koury Aviation.
Liotta says Volato still cannot refund Insider jet card clients.
However, it now allows them to use their remaining balances for ad hoc charter flights.
The former program’s fixed rates no longer apply, so the charter flights are via dynamic pricing quotes.
Liotta says, “We still believe FlyExclusive remains the best deal.”
According to Liotta, several additional cases are in state courts and arbitration.
READ: Private jet provider financial stability – what you said
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