Lockport Union-Sun & Journal Online

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
Featured Ads
Photos


Twitter Updates
Follow us on twitter
Front page
AP Video
Raw: Families Travel to Taiwan Plane Crash Site Arizona Execution Takes Almost Two Hours Gen. Odierno Discusses Ukraine, NATO at Forum Gaza Fighting Rages Amid Cease-Fire Efforts Mint Gives JFK Coin a Face-lift Creative Makeovers for Ugly Cellphone Towers Ariz. Inmate Dies 2 Hours After Execution Began Crash Kills Teen Pilot Seeking World Record LeBron James Sends Apology Treat to Neighbors Raw: Funeral for Man Who Died in NYPD Custody Migrants Back in Honduras After US Deports Israeli American Reservist Torn Over Return Raw: ISS Cargo Ship Launches in Kazakhstan Six Indicted in StubHub Hacking Scheme Former NTSB Official: FAA Ban 'prudent' EPA Gets Hip With Kardashian Tweet Bodies of MH17 Victims Arrive in the Netherlands Biden Decries Voting Restrictions in NAACP Talk Broncos Owner Steps Down Due to Alzheimer's US, UN Push Shuttle Diplomacy in Mideast
Seasonal Content
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
AP Video
Raw: Families Travel to Taiwan Plane Crash Site Arizona Execution Takes Almost Two Hours Gen. Odierno Discusses Ukraine, NATO at Forum Gaza Fighting Rages Amid Cease-Fire Efforts Mint Gives JFK Coin a Face-lift Creative Makeovers for Ugly Cellphone Towers Ariz. Inmate Dies 2 Hours After Execution Began Crash Kills Teen Pilot Seeking World Record LeBron James Sends Apology Treat to Neighbors Raw: Funeral for Man Who Died in NYPD Custody Migrants Back in Honduras After US Deports Israeli American Reservist Torn Over Return Raw: ISS Cargo Ship Launches in Kazakhstan Six Indicted in StubHub Hacking Scheme Former NTSB Official: FAA Ban 'prudent' EPA Gets Hip With Kardashian Tweet Bodies of MH17 Victims Arrive in the Netherlands Biden Decries Voting Restrictions in NAACP Talk Broncos Owner Steps Down Due to Alzheimer's US, UN Push Shuttle Diplomacy in Mideast
Seasonal Content
Helium debate
Helium
Section Teases

Seasonal Content
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.