Mesa Air, Investors Get Preliminary OK to Settle On Upkeep Woes

A $5 million settlement to resolve class claims that Mesa Air Group misled investors in public statements about its plane-maintenance capacity has gotten initial court approval.

The proposal will likely be found fair, reasonable, and adequate, Judge Michael T. Liburdi said Oct. 28 for the US District Court for the District of Arizona.

The $5 million fund would include attorneys’ fees, administration expenses, and other costs, according to the agreement.

The investors accuse the regional carrier of misleading them about aircraft maintenance in its initial public offering, according to an earlier opinion of the court. Ultimately, its inability to find qualified maintenance people and avoid grounded planes resulted in disappointing financial performance, they say.

Liburdi trimmed the claims in July 2021, rejecting investor allegations that Mesa Air had made misleading statements about its operational performance, spare planes, and a capacity purchase agreement with American Airlines Inc. But he allowed the investors to pursue claims dealing with Mesa Air’s statements on aircraft maintenance.

Mesa Air and its investors stipulated to certification in an effort to “avoid unnecessary motion practice” in December 2021.

Lead plaintiff DeKalb County Pension Fund is class representative.

Class counsel is Faruqi & Faruqi LLP. Wilson Sonsini Goodrich & Rosati PC and Sacks, Ricketts & Case LLP represent Mesa Air.

The case is Lowthorp v. Mesa Air Grp., 2022 BL 387158, D. Ariz., No. CV-20-00648, 10/28/22.