American Airlines Faces Lawsuit for Shutting Down Accounts Due to Multiple Credit Card Bonuses

American Airlines Faces Lawsuit for Shutting Down Accounts

American Airlines was sued on Monday in a proposed class action claiming the airline shut down accounts for some customers who received multiple credit card bonuses. The lawsuit was filed by two customers who said the carrier stripped them of 1.1 million miles back in 2020. Many other accounts were shut down in late 2019.

Ari and Shanna Nachison said American wrongly accused them of fraud for opening multiple AAdvantage accounts, with cards issued under co-branding arrangements with Citibank and Barclays. They claim that while some card applications prevented multiple credit card bonuses within a 48-month period, theirs did not.

Ari Nachison said he lost 564,463 miles, while Shanna Nachison said she lost 550,664 miles.

They say that American Airlines had cited violations “related to the accrual of ineligible miles and benefits; through fraud, misrepresentation and/or abuse of the AAdvantage Program” in emails announcing the account closures.

The lawsuit filed in the San Jose, California federal court seeks damages for people whose AAdvantage accounts were terminated based on alleged fraud for obtaining signup bonuses from AAdvantage credit cards issued by Citi and Barclays.

The case is Nachison et al v American Airlines Inc, U.S. District Court, Northern District of California, No. 24-00530.

HT: Reuters

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