JetSmarter can walk away from the proposed Class Action arbitration settlement if more than 10% of members opt out
Last week, in reviewing the 13-page “Notice of Settlement” as the basis for my analysis of JetSmarter’s proposed Class Action settlement, I was struck that there was a seeming lack of detail.
It wasn’t clear which flights you could apply the valuable 50% off Resolution Credits. Not finding anyone willing to answer my questions, I made note of it in my article.
JetSmarter Class Action Settlement Agreement
After I published the story, I was happy to see in my inbox a more detailed 45-page “Settlement Agreement.” There is some good news.
The jet sharing broker remains the subject of individual lawsuits, however, up to 12,000 members may be eligible for cash and credits under a proposed Class Arbitration settlement
We take an in-depth look at the value of the proposed settlement
Anyone who was a member of JetSmarter from September 5, 2014 until June 19, 2018 should be receiving a Notice of Settlement (Arbitration Matter No. 01-18-0003-3338) as part of a Class Action filed via arbitration last September. It’s estimated as many as 12,000 former and current members of the private jet plane sharing membership program could be eligible.
The proposed settlement offers members of the Class a net distribution of $2,975,000 plus potentially tens of millions of dollars in free membership extensions and flight credits.
The action was filed by Solowsky & Allen, P.L., a Miami law firm, which also apparently negotiated the settlement with JetSmarter. Requests for comment were not returned from either Solowsky & Allen or a second law firm listed on the settlement notice.
After moving its shared flight program from free seats to paid and scheduled flights to a crowdsourcing model, JetSmarter apparently wants to focus on being a charter broker
12.4.2018 – Editor’s Note: After publishing this article, Sergey Petrossov, CEO of JetSmarter, reached out to me to say he didn’t think the article provided a fair view of the company’s on-demand charter program. Normally, I would contact a company with questions before publishing, but after being told three times over the past two-and-a-half months JetSmarter wasn’t going to answer my questions, I didn’t bother. The article was also designed to highlight four places I saw shortcomings in their offerings. However, I have happily integrated Petrossov’s responses to my points in red and as always welcome any critiques people have on what I publish.”
Despite mounting lawsuits, JetSmarter is now more aggressively marketing full aircraft charters, apparently trying to compete with a host of online and offline brokers. While the sharing economy private jet provider has always sold full aircraft charters, it recently began displaying options for full aircraft charters when searching for flights, which are now apparently nearly all built on a crowdsourcing model as opposed to its previous model of having scheduled private jet flights to book by the seat.
PrivatAir’s insolvency marks another ‘good times’ private aviation blackeye and reminds buyers they need to research the stability of providers
Yes, it’s another ‘good times’ private aviation hiccup in what has been described as the peak of the segment’s 10-year recovery. “Any Jet, Anywhere, Any time” reads the on-demand private jet charter page of the Swiss and German private jet management company PrivatAir which said it has filed for insolvency today.
Sharing economy private jet by the seat provider JetSmarter has been hit with its sixth lawsuit since in August
The Fort Lauderdale-based company, which sells private jet flights on a by-the-seat basis, was hit yesterday with another lawsuit, this time by a member who was sold a $97,500 upgrade to a Sophisticated Membership just days before the company announced it was opening flights to non-members.
The latest lawsuits bring to at least five the number of actions alleging fraud against the Ft. Lauderdale-based sharing economy private jet membership service
As a lawsuit seeking at least $2 million against it continues with a hearing scheduled for early December in Los Angeles, JetSmarter has been hit with two more lawsuits. The first one was filed October 16th in The United States District Court For The Eastern District Of Wisconsin, at least the fourth since August, and accuses the Fort Lauderdale-based sharing economy private jet service with breach of contract, breach of good faith and fraudulent representation. The lawsuit seeks at least $75,000 in compensatory damages, undisclosed punitive damages, attorney’s fees and other relief that the court deems proper. In another lawsuit, filed today in the Southern District of Florida, Illinois-based Joann Bachewicz is seeking at least $300,0000 after she paid $87,500 for a three-year membership JetSmarter represented as having a $150,000 value.
The lawsuit, the second since last Friday, was filed earlier this week in California after JetSmarter refused to renew the plaintiff’s membership. It seeks to have the private jet-sharing provider live up to the promises it allegedly made and reneged on to members
A day before his auto-renew membership should have been extended earlier this year and nearly a month after his opt-out date, Derek Milosavljevic received a notification from JetSmarter it wouldn’t allow him to renew him for a third year. His lawyer says the only explanation he was given about why he couldn’t continue was, “It was a management decision,” although he believes it could have been retaliation for a “negative but truthful” review he posted on Yelp in June 2017. His lawyer, Darin T. Beffa, noted that in not allowing his client to renew, JetSmarter violated its own and ever-changing terms, which he says required a notice period of 30 days by the member, and that is the point of the 57-page lawsuit with 70 more pages of attachments, including Instagram posts from Kim Kardashian and Petra Nemcova.