The Stanly News and Press (Albemarle, NC)

Community News Network

December 18, 2013

Company to get $135 million from American Airlines over 9/11

NEW YORK — Cantor Fitzgerald LP will receive $135 million from American Airlines to drop its lawsuit in which the carrier is accused of failing to stop the hijacking of the plane that crashed into the north tower of the World Trade Center on Sept. 11, 2001, killing 658 of the firm's employees.

Cantor disclosed the accord in a court hearing last week and on Tuesday told U.S. District Judge Alvin K. Hellerstein in Manhattan the size of the settlement, Robert Hubbell, a spokesman for Cantor, said Tuesday in a phone call. A hearing on approval is scheduled for Jan. 13.

"For us, there is no way to describe this compromise with inapt words like ordinary, fair or reasonable," Cantor Chief Executive Officer Howard Lutnick said Tuesday in an e-mailed statement. "All we can say is that the legal formality of this matter is over."

The settlement of the lawsuit, filed almost 10 years ago, came four days after American's parent, AMR Corp., completed a merger with US Airways Group Inc. to form American Airlines Group Inc. Hubbell declined to comment Tuesday on how Cantor will use the money.

Al-Qaida terrorists flew jetliners into the Twin Towers, causing both to burn and collapse. Two other planes were hijacked. One hit the Pentagon near Washington, and another crashed in a field in Pennsylvania after passengers fought the terrorists. About 3,000 people died.

Cantor alleged American should have stopped five Islamic extremists who took over Flight 11 from Logan International Airport in Boston and crashed into the North Tower. Cantor's offices were near the top of the 110-story building.

In a statement about the deal on Dec. 13, Kent Powell, a spokesman for Fort Worth, Texas-based American, said the lawsuit alleged it "should have done what the government could not do: prevent the terrorist attacks." The carrier's insurers agreed to settle with Cantor, he said.

In the lawsuit, filed in September 2004, the New York-based global financial services firm sought $945 million. A 2011 ruling in the airline's favor limited Cantor to seeking damages for business interruption and barred it from seeking damages for the deaths of its employees.

Lutnick's brother, who was a senior executive at the firm, died in the attack. The firm had 960 employees in New York at the time.

On Sept. 11 each year, Cantor and its affiliate, BGC Partners Inc., which was spun off in 2004, give all their revenue from the day to more than 40 nonprofit groups. The companies, both led by Lutnick, raised about $12 million this year, and over the past 11 anniversaries combined it has donated about $89 million, Hubbell said.

Cantor, founded in 1945, has new offices off Park Avenue in Midtown Manhattan. The company and BGC have a total of about 3,200 employees in New York and 8,000 worldwide.

1
Text Only
Community News Network
  • Wal-Mart to cut prices more aggressively in back-to-school push

    Wal-Mart Stores plans to cut prices more aggressively during this year's back-to-school season and will add inventory to its online store as the chain battles retailers for student spending.

    July 21, 2014

  • 20110929_bowling.jpg Why fewer people go bowling

    Like other industries facing tough economic times, America's bowling centers are trying to reinvent themselves.

    July 15, 2014 1 Photo

  • President Barack Obama mug Best president? Worst president? Don't read too much into those polls

    The questions about who are the best and worst post-WWII presidents are useless. What they mainly show is that Republicans are far more unified around a single story than are Democrats.

    July 2, 2014 1 Photo

  • lawgrad.jpg Things looking up for law school grads

    This might sound weird, but here goes: Now might be a pretty good time to think about law school. For the sixth year running, the employment rate fell, as schools produced a record number of graduates for an industry without the room for them. There was, however, a nugget of good news buried in the data.

    June 25, 2014 1 Photo

  • 20140625-AMX-HEALTH-EXERCISE252.jpg Fitness program caters to people with developmental disabilities

    Spirit - which stands for "Social Physical Interactive Respectful Inclusive Teamwork" - offers classes that help clients with developmental disabilities build muscle, increase flexibility and improve their diets. As a population, they have limited opportunities when it comes to health, Smith says. "And a lot need more social interaction," he adds.

    June 25, 2014 1 Photo

  • twitter.jpg Mobile web siphoning revenue from U.S. cities as landlines fade

    Tweeting, Facebooking, Skyping smartphone users are costing U.S. states and cities revenue as taxes rooted in old-fashioned telephone service fail to keep up with the Internet era.

    June 25, 2014 1 Photo

  • Screen Shot 2014-06-25 at 10.42.53 AM.png VIDEO: Police say thief forgets to log off Facebook while robbing home

    A Minnesota man was jailed after he logged on to Facebook from a home he broke into, then forgot to log out.

    June 25, 2014 1 Photo

  • breaking-up.jpg Thinking about breaking up? Flip a coin

    In their latest book, 'Think Like a Freak," Steven Levitt and Stephen Dubner suggest that, contrary to what many people have told you in life, you should quit. That is, when things get tough, you shouldn't always tough them out and stick with it. Instead, you should quit and do so sooner rather than later.

    June 25, 2014 1 Photo

  • Starbucks tests Greek yogurt smoothies in California, Missouri

    Starbucks Corp., which started selling handmade sodas in the southern United States Tuesday, is now testing three flavors of Greek-yogurt smoothies as it continues trying to broaden its appeal beyond coffee.

    June 24, 2014

  • Bq6uCTrCQAAlzeo.jpg Tornado touches down near Indianapolis

    A band of storms containing heavy rains, lightning and gusting winds spawned at least one tornado near Indianapolis Tuesday afternoon, authorities said.

    June 24, 2014 1 Photo 1 Slideshow

Graduation Salutes
Seasonal Content