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
  • Screen Shot 2014-04-22 at 4.42.47 PM.png VIDEO: Leopard attacks crowd in India

    A leopard caused panic in the city of Chandrapur when it sprung from the roof of a house and charged at rescue workers.

    April 22, 2014 1 Photo

  • The top 12 government programs ever

    Which federal programs and policies succeed in being cost-effective and targeting those who need them most? These two tests are obvious: After all, why would we spend taxpayers' money on a program that isn't worth what it costs or helps those who do not need help?

    April 22, 2014

  • In cuffs... 'Warlock' in West Virginia accused of sexual assault

    Police in West Virginia say a man claiming to be a “warlock” used promises of magical spells to lure children into committing sexual acts with him.

    April 22, 2014 1 Photo

  • Cats outsmart the researchers

    I knew a lot had been written about dogs, and I assumed there must be at least a handful of studies on cats. But after weeks of scouring the scientific world for someone - anyone - who studied how cats think, all I was left with was this statement, laughed over the phone to me by one of the world's top animal cognition experts, a Hungarian scientist named Ádám Miklósi.

    April 22, 2014

  • McCain 1 House Republicans are more active on Twitter than Democrats

    Your representative in the House is almost certainly on Twitter. Your senator definitely is. But how are they using the social network? Are Democrats more active than Republicans, or vice versa? Who has the most followers on the Hill?

    April 22, 2014 1 Photo

  • Why do wolves howl?

    Of all the myths that dog the wolf, none is more widely accepted than the idea that wolves howl at the moon. Images of wolves with their heads upturned, singing at the night sky, are as unquestioned as a goldfish's three-second memory or a dog's color-blindness (both also myths).

    April 18, 2014

  • Biggest student loan profits come from grad students

    This week, the Congressional Budget Office projected that the federal government would earn roughly $127 billion from student lending during the next 10 years.

    April 18, 2014

  • quake.jpg Pennsylvania won’t take action following Ohio ruling on quakes, fracking

    Pennsylvania officials plan no action despite new Ohio rules on drilling that affect a seismically active area near the state line.

    April 18, 2014 1 Photo

  • Raw oysters spike U.S. rise in bacterial infections, CDC reports

    Raw oysters, so good with hot sauce, increasingly can carry something even more unsettling to the stomach: A bacteria linked to vomiting, diarrhea and pain.

    April 17, 2014

  • To sleep well, you may need to adjust what you eat and when

    Sleep.  Oh, to sleep.  A good night's sleep is often a struggle for more than half of American adults.  And for occasional insomnia, there are good reasons to avoid using medications, whether over-the-counter or prescription.

    April 16, 2014

Graduation Salutes
Seasonal Content