Case: Verified Identity Pass, Inc. Consumer Litigation, Docket No. 09-cv-5951
Court: Southern District of New York
Class Period:
Attorneys: Frederic S. Fox, Laurence D. King, Christine M. Fox, Mario Choi

Kaplan Fox filed a consumer class action in the United States District Court for the Southern District of New York against Verified Identity Pass, Inc. (“VIP”) which operated an airport check-in membership program called CLEAR featuring special security lanes in airports that allowed its members to bypass long lines at check-in and proceed directly to airport screening. On June 22, 2009, VIP notified CLEAR members that it was ceasing operations effective immediately and that it would not issue refunds to CLEAR members “due to the company’s financial condition.” Plaintiffs’ complaint, filed on June 29, 2009, alleges that VIP wrongfully converted monies of Plaintiff and the Class, defrauded Plaintiff and the Class, breached contracts with Plaintiff and the Class, acted negligently with respect to Plaintiff and the Class and was unjustly enriched at the expense of Plaintiff and the Class.

Defendant VIP filed for bankruptcy protection under Chapter 11. On April 6, 2010, the Honorable Judge Richard J. Holwell stayed plaintiffs’ putative class action against VIP. Kaplan Fox (appointed Interim Lead Counsel in the consolidated case before Judge Holwell) has appeared in bankruptcy court on behalf of CLEAR members. The bankruptcy court has since approved of a sale of VIP’s assets to Henry, Inc. In connection with that sale, VIP has stated that it intends to contact CLEAR members to ascertain whether they would like to participate in a new Registered Traveler program operated by Henry, Inc. If members do not wish to participate in the new program, they may request that their confidential and biometric information be destroyed.