Kendall Anderson, et al. v. American Airlines, Inc. and American Airlines Group, Inc.

District Court, S.D. California·Decided September 2, 2026·No. 3:25-cv-03609·Unknown

Opinion

KENDALL ANDERSON, et. al, Case No. 25-cv-03609-BAS-MSB

Plaintiffs, ORDER DENYING DEFENDANTS v. AMERICAN AIRLINES, INC. AND AMERICAN AIRLINES GROUP, INC.’S MOTION TO TRANSFER Defendants. VENUE (ECF No. 70) Presently before the Court is Defendants American Airlines, Inc. and American Airlines Group, Inc.’s (“AA Defendants”) Motion to Transfer Venue. (ECF No. 70.) For the reasons below, the Court DENIES AA Defendants’ Motion to Transfer Venue. (Id.) American Airlines announced the American Airlines Cadet Academy (“AACA”) in April 2018, describing it as a first-of-its-kind program to give aspiring pilots the training, financing, and mentoring needed to fly for the world’s largest airline. (ECF No. 62 ¶¶ 1, 52, 99, FAC.) Beginning in January 2019, American partnered with Coast Flight Training to run the AACA at Coast's campuses in San Diego, Dallas, and San Marcos. (Id. ¶¶ 41, 60.) American recruited, interviewed, and selected the cadets; Coast provided the training. (Id. ¶¶ 42, 61.) Both American Airlines, Inc. and American Airlines Group, Inc. are alleged to have operated the program jointly, with the Group entity describing the AACA in sustainability reports as its own recruitment vehicle. (Id. ¶¶ 40, 62.) Defendants also designated “partner lenders”—Discover, Sallie Mae, and the American Airlines Federal Credit Union—emailed cadets links to loan applications, and, through Coast, certified the loans, received disbursements directly, held the funds in Coast’s own prepaid accounts, and controlled the release of living-expense money to cadets. (Id. ¶¶ 66–78.) All twenty Plaintiffs are all non-white and had little or no aviation background prior to the AACA program. (Id. ¶¶ 402, 428, 447, 475, 502, 521, 542, 577, 601, 633, 657, 688, 709, 730, 757, 782, 810, 838, 865, 897). Plaintiffs allege that upon seeing American’s advertising, they believed the AACA program would make them a commercial pilot in twelve months for a fixed, loan-covered price, and rearranged their lives accordingly—quitting jobs, declining college offers, relocating across the country, and borrowing $52,000 to $126,000. (Id. ¶¶ 4, 7, 380.) None of the twenty finished. (Id. ¶ 117.) Sixteen were terminated; and four resigned under pressure. (Id. ¶¶ 15, 326, 329.) Each relocated to a Coast campus, several across the country. (Id. ¶¶ 7, 17–36.) Despite leaving the AACA program without obtaining their licenses, Plaintiffs currently carry loans from the program—averaging about $90,000, some at 14% interest, with missed payments, damaged credit, and at least one default. (Id. ¶¶ 379, 385–386.) On December 16, 2025, Plaintiffs filed the present action against Defendants American Airlines Federal Credit Union (“AAFCU”), Coast Flight Training and Management, Inc. (“Coast”), and American Airlines Group, Inc., and American Airlines, Inc., (“AA Defendants”) (collectively, “Defendants”). (ECF No. 1.) On April 7, 2026, Plaintiffs voluntarily dismissed all claims against AAFCU. (ECF No. 55.) Two weeks later, Plaintiffs filed the first amended complaint. (FAC.) In the FAC, Plaintiffs bring the following causes of action: 1. Count 1: Fraud / Intentional Misrepresentation (FAC ¶¶ 920–931). Common law (punitive damages sought under Cal. Civ. Code § 3294, id. ¶ 931). Brought by all 20 Plaintiffs against all Defendants (American and Coast). 2. Count 2: Fraudulent Concealment / Fraud by Non-Disclosure (FAC ¶¶ 932– 944). Common law (punitive damages sought under Cal. Civ. Code § 3294, id. ¶ 944). Brought by all 20 Plaintiffs against all Defendants (American and Coast). 3. Count 3: Promissory Fraud / Fraudulent Inducement (FAC ¶¶ 945–957). Common law (punitive damages sought under Cal. Civ. Code § 3294, id. ¶ 957). Brought by all 20 Plaintiffs against all Defendants (American and Coast). 4. Count 4: Negligent Misrepresentation (FAC ¶¶ 958–964). Common law. Brought by all 20 Plaintiffs against all Defendants (American and Coast). 5. Count 5: Unfair Competition Law (“UCL”) (FAC ¶¶ 965–976). Cal. Bus. & Prof. Code § 17200 et seq. Brought by all 20 Plaintiffs against all Defendants (American and Coast). 6. Count 6: False Advertising Law (“FAL”) (FAC ¶¶ 977–985). Cal. Bus. & Prof. Code § 17500 et seq. Brought by all 20 Plaintiffs against all Defendants (American and Coast). 7. Count 7: Consumers Legal Remedies Act (“CLRA”) (FAC ¶¶ 986–1001). Cal. Civ. Code § 1750 et seq. (actual and punitive damages sought, id. ¶ 999). Brought by all 20 Plaintiffs against all Defendants (American and Coast). 8. Count 8: Texas Deceptive Trade Practices–Consumer Protection Act (FAC ¶¶ 1002–1028). Tex. Bus. & Com. Code § 17.41 et seq. Brought by all 20 Plaintiffs against all Defendants (American and Coast). 9. Count 9: Unruh Civil Rights Act (“Unruh”) (FAC ¶¶ 1029–1037). Cal. Civ. Code § 51 et seq. Brought by 11 Plaintiffs (Anderson, Fogel, Hernandez, Khan, Kumar, Little, McGowan, Page, Pearson, Sanderson, Thelus) against all Defendants (American and Coast). 10. Count 10: Race Discrimination—Equal Credit Opportunity Act (FAC ¶¶ 1038–1053). 15 U.S.C. § 1691 et seq. (punitive damages up to $10,000 sought under § 1691e(b), id. ¶ 1053). Brought by all 20 Plaintiffs against all Defendants (American and Coast). 11. Count 11: Civil Rights Act of 1866 (FAC ¶¶ 1054–1061). 42 U.S.C. § 1981 (punitive damages sought, id. ¶ 1060). Brought by all 20 Plaintiffs against all Defendants (American and Coast). 12. Count 12: Title VI, Civil Rights Act of 1964 (FAC ¶¶ 1062–1069). 42 U.S.C. § 2000d. Brought by all 20 Plaintiffs against Coast only. 13. Count 13: Breach of Contract (FAC ¶¶ 1070–1077). Common law; includes breach of the implied covenant of good faith and fair dealing (id. ¶ 1075). Brought by all 20 Plaintiffs against Coast only. 14. Count 14: Breach of Contract (FAC ¶¶ 1078–1092). Common law; includes breach of the implied covenant of good faith and fair dealing (id. ¶ 1084). Brought by all 20 Plaintiffs against American only. 15. Count 15: Breach of Quasi-Contract against all defendants (¶¶ 1087–1092) AA Defendants move to transfer the action from the present District to the Northern District of Texas, Fort Worth Division (“NDTX”). (ECF No. 70, Venue Mot.) More specifically, AA Defendants request the Court, under 28 U.S.C. § 1404(a), to transfer the entire case from this District to the Northern District of Texas, Fort Worth Division (“NDTX-FW”). (Venue Mot.) In the alternative, AA Defendants request the Court to sever eight “Non-California Plaintiffs” and transfer their claims under Rule 21. (Venue Mot. 18:10–19:27.) Plaintiffs oppose AA Defendants’ Motion to Transfer Venue. (ECF No. 73. Pl. Opp. Venue Mot.) AA Defendants replied. (ECF No. 74, Reply to Venue Mot.) Plaintiffs filed a sur-reply. (ECF No. 79, Sur-Reply

Free access — add to your briefcase to read the full text and ask questions with AI

Kendall Anderson, et al. v. American Airlines, Inc. and American Airlines Group, Inc., (S.D. Cal. 2026).

Kendall Anderson, et al. v. American Airlines, Inc. and American Airlines Group, Inc. (Kendall Anderson, et al. v. American Airlines, Inc. and American Airlines Group, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gulf Oil Corp. v. Gilbert
330 U.S. 501 (Supreme Court, 1947)
Decker Coal Company v. Commonwealth Edison Company
805 F.2d 834 (Ninth Circuit, 1986)
Vu v. Ortho-McNeil Pharmaceutical, Inc.
602 F. Supp. 2d 1151 (N.D. California, 2009)
United States v. Rivera Rodriguez
768 F. Supp. 16 (D. Puerto Rico, 1991)
McNair v. Monsanto Co.
279 F. Supp. 2d 1290 (M.D. Georgia, 2003)
Florens Container v. Cho Yang Shipping
245 F. Supp. 2d 1086 (N.D. California, 2002)
Shakir v. Fulwood
108 F. Supp. 3d 1 (District of Columbia, 2015)
Hawkins v. Gerber Products Co.
924 F. Supp. 2d 1208 (S.D. California, 2013)
San Diego County Credit Union v. Cefcu
65 F.4th 1012 (Ninth Circuit, 2023)