JetSmarter Litigation Thread

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Old Aug 6, 18, 3:13 pm
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JetSmarter Litigation Thread

The seal has been broken. The first federal lawsuit brought by a consumer against JS was filed last week in New Jersey. You can read the complaint here: https://www.scribd.com/document/3855...n-v-JetSmarter

In addition to the previously-covered employee class action, another case has also been filed in state court in Florida by a disgruntled ex-employee. You can read that complaint here: https://www.scribd.com/document/3855...n-v-Jetsmarter

I expect these will be the tip of the iceberg for JS litigation, and court activity deserves its own thread.

Last edited by millions; Aug 6, 18 at 4:17 pm
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Old Aug 7, 18, 12:21 am
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Will be interesting to see how this goes. The plaintiffs are stupid to mention their travels to Morocco in their complaint. Jetsmarter never promised free flights to Morocco.
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Old Aug 7, 18, 12:15 pm
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Originally Posted by PbodyPhoto View Post
Will be interesting to see how this goes. The plaintiffs are stupid to mention their travels to Morocco in their complaint. Jetsmarter never promised free flights to Morocco.
Europe and Middle East are clearly listed as Free Destinations in the salesmans pitch.
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Old Aug 7, 18, 7:32 pm
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Originally Posted by Mike Azzarello View Post
Europe and Middle East are clearly listed as Free Destinations in the salesmans pitch.
i know and I agree with the premise of their lawsuit but the free shuttles were within Europe and within the Middle East. If they looked at the routes they would know there was never a shuttle to Morocco. Inaccurate claims never go well in lawsuits
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Old Aug 9, 18, 5:47 am
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Morocco is in Africa
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Old Aug 9, 18, 12:35 pm
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A new JS lawsuit - this one for $2 million from a member who was booted in California - In addition to changing terms and misleading customers, there is apparently a Yelp Law in California that prevents companies from retaliating against customers who post negative reviews. It sounds like the member believes he was evicted because of a prior negative review on Yelp. It also delves into JetSmarter's use of influencer marketing - Kim Kardashian, etc. and how it and the influencers didn't disclose the relationship. The Points Guy also gets a mention. The suit is not connected to the New Jersey lawsuit or the rumored class action lawsuit according to this article.

https://privatejetcardcomparisons.co...st-jetsmarter/
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Old Aug 13, 18, 8:14 pm
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Looks like the case filed by the disgruntled ex-employee referenced above was in response to a federal lawsuit filed by JetSmarter claiming this person stole and misused JetSmarter's customer lists containing users' personal information. Specifically, JetSmarter seems to be asserting the ex-employee has stolen the information and provided it to its competitor Blade. There is some very interesting material in that case's files, including sworn deposition testimony by JetSmarter's designated representative about the information JetSmarter maintains about its members:

22· ·Yes.· The customer list is essentially everyone
23· ·that has downloaded our app.· It shows on our side who
24· ·that person is.· It provides their name.· Once they
25· ·become a member, they provide the type of membership

Case 0:17-cv-62541-FAM Document 58 Entered on FLSD Docket 06/29/2018 Page 127 of 227

·1· ·that they've signed up as, when they signed up as a
·2· ·member, how long they've been a member, the amount of
·3· ·money they spent as a member.· It also shows their date
·4· ·of birth once they're a member, it shows their legal
·5· ·name as a member, it shows their weight as a member, it
·6· ·shows what type of phone they're utilizing to download
·7· ·our app on, it shows us the last time they've looked on
·8· ·our app on that phone, it shows the flights that they
·9· ·have taken with us, it shows the cities that they're
10· ·interested in traveling with us, it shows the type of
11· ·flight that they have taken with us, it shows the amount
12· ·of money that they have spent with us on those flights,
13· ·it shows the airports surrounding those flights, it
14· ·shows the exact FBOs that they're flying to in and out
15· ·of the flights, the departure time of those flights, it
16· ·also shows all communication between the departments and
17· ·that member and the message center, and it also has the
18· ·ability for our team to respond to anything that the
19· ·member says in those.
The Case is Jetsmarter v. Benson, No. 17-cv-62541-FAM in the United States District Court for the Southern District of Florida. You can read the JetSmarter rep's deposition transcript starting at page 20 of this recent filing: https://www.scribd.com/document/3861...arter-v-Benson
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Old Aug 14, 18, 4:39 pm
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Very interesting @millions. The name Joe(seph) Benson should ring a bell with some people here..
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Old Aug 15, 18, 10:33 am
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For those of you who believe or have been told you have no recourse against JetSmarter except to arbitrate in Florida, here's one example of a successful small claims suit filed against the company in Los Angeles last year:

https://www.scribd.com/document/3862...t-and-Judgment

The plaintiff's allegations in the case may be familiar to some here:

DEFENDANT MISREPRESENTED "GRANDFATHERING", "LOCKED IN" RATES, BUT THEN INSTEAD CHANGED TERMS OF ONGOING SERVICE.
JetSmarter failed to appear, and the plaintiff was awarded a default judgment of $8,044.

The case is Alexandru Popa v. JetSmarter, Case Number: 17IWSC06061
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Old Aug 16, 18, 11:56 am
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I have been saying for years that JetSmarter is a ponzi scheme that is about to topple over. I wrote a blog post on my companies website saying as much.

The information they used to raise all of their capital was borderline fraudulent. Totally misrepresenting what they were capable of to those who didn't have an advanced knowledge of the private jet charter industry. They started out by saying they'd be able to capture/monetize basically 100% of the empty leg market, which is not possible. Never has been and never will be.

As an owner of a Private Jet Charter Company, I could go on and on about JetSmarter for days. Fire any questions you may have about JS at me and I will give you candid responses.

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Old Aug 16, 18, 1:00 pm
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Originally Posted by PJ Paul View Post
I have been saying for years that JetSmarter is a ponzi scheme that is about to topple over. I wrote a blog post on my companies website saying as much.

The information they used to raise all of their capital was borderline fraudulent. Totally misrepresenting what they were capable of to those who didn't have an advanced knowledge of the private jet charter industry. They started out by saying they'd be able to capture/monetize basically 100% of the empty leg market, which is not possible. Never has been and never will be.

As an owner of a Private Jet Charter Company, I could go on and on about JetSmarter for days. Fire any questions you may have about JS at me and I will give you candid responses.

PJ Paul
PJ Paul,

Can you elaborate on the "ponzi scheme" aspect of jetsmarter?

I disagree with this company's significant terms & conditions adjustments during a membership period but don't see this as a ponzi where a swindle results in a quick profit for investors.

I have not signed up even though I was close a few times. Not being able to control my schedule isn't worth any real or perceived cost savings to me. In the past, members ranted and raved about it.. I missed that boat.

But how is this a ponzi scheme vs. an investment that didn't come to fruition yet?

I believe that's on the investors being naive enough to think that the company WOULD BE capable of capturing the empty leg market and returning a profit. It's a gamble they are taking, and they might pay dearly, or get away unscathed by selling their share to another naive investor.

Do you see any possible change in jetsmarter's business model that could turn the company into a profitable enterprise?
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Old Aug 17, 18, 11:54 am
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Originally Posted by WhyPrivate View Post
PJ Paul,

Can you elaborate on the "ponzi scheme" aspect of jetsmarter?

I disagree with this company's significant terms & conditions adjustments during a membership period but don't see this as a ponzi where a swindle results in a quick profit for investors.

I have not signed up even though I was close a few times. Not being able to control my schedule isn't worth any real or perceived cost savings to me. In the past, members ranted and raved about it.. I missed that boat.

But how is this a ponzi scheme vs. an investment that didn't come to fruition yet?

I believe that's on the investors being naive enough to think that the company WOULD BE capable of capturing the empty leg market and returning a profit. It's a gamble they are taking, and they might pay dearly, or get away unscathed by selling their share to another naive investor.

Do you see any possible change in jetsmarter's business model that could turn the company into a profitable enterprise?
From my understanding, their business model was always flawed and what they were promising they'd be able to do is borderline impossible. There is really no way to capture/monetize a majority of the empty leg market like they claimed they would do. So many of the empty legs out there are repo flight from places like Midland, TX to Waco, TX. There is a very tiny market for that type of flight to begin with, so to project that you are going to monetize and profit off of flights like that is misleading.

I think the term "ponzi scheme" may not apply, I was just using the word flippantly. I do know that the execs pay themselves very well and i know that the company cannot be turning a profit with the amount of money they spend on advertising. I run a very lean private jet charter brokerage myself, and the margins in this industry are very small, so there is no way they can be turning a profit with the amount of overhead they have. I also know last year their CFO got indicted for embezzling investor money (allegedly). When there is smoke, there tends to be fire.
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Old Aug 18, 18, 2:45 pm
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So two big stories in the Miami Herald and Forbes

JetSmarter, the Fort Lauderdale-based private jet startup that Silicon Valley has valued at more than $1 billion, used celebrities including Kim Kardashian and Petra Nemcova to mislead customers, a new lawsuit alleges.

The complaint, filed in L.A. County Superior Court in California earlier this month, does not name the celebrities as defendants. But plaintiff Derek Milosavljevic, a JetSmarter customer, accuses JetSmarter of using the stars to plug the company without having them disclose that they were paid promoters.

“JetSmarter’s advertisements are unfair, unlawful, deceptive, and misleading, and have violated and continue to violate state and federal laws and regulations,” the suit alleges.
Source: The Miami Herald
https://www.miamiherald.com/news/bus...216880465.html

A Case Study In How Not To Do It

Most people I’ve talked to aren’t surprised that JetSmarter finally had to come 180 degrees from the buffet of free seats and empty legs. Nothing they saw provided a logical explanation that the company might be gaining profitability as it kept making incremental changes. It’s the journey from the good old days of tokens and free flights from New York to Los Angeles to the present that has sapped much of the goodwill from those early members.

In June it was announced free flights are no longer being offered for new members. Existing members who bought in under the expectation of flying free claim there is a deficit of inventory for their use. They also say they were being pushed into less attractive memberships, charged one price to then learn others were charged much less or dropping out of the program in some cases despite claims of high renewals.
Source: Private Jet Card Comparisons
https://www.forbes.com/sites/douggol.../#2f2fb86e5b34
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Old Aug 18, 18, 4:37 pm
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The Kardashian/Nemcova allegations are 8 paragraphs out of 200-paragraph, 57-page complaint. Talk about clickbait.
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Old Oct 2, 18, 12:07 pm
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Davimos v. JetSmarter, another New Jersey action, this time filed in state court, is linked here. The claims are familiar, misrepresentations about the services and costs. Plaintiff here is seeking at least $890,000.
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