Comair Class Action Settlement

January 5, 2009

On December 17, 2008, the U.S. District Court for the Eastern District of Kentucky approved a class action settlement in Massey v. Comair that benefits approximately 3,000 Comair employees and retirees. The case alleged that Comair and Mellon Bank violated a federal law known as ERISA (Employee Retirement Income Security Act of 1974) by including Delta stock as a 401-k investment option.

Waite, Schneider, Bayless & Chesley filed the class action to recover losses that Comair’s 401-k suffered by Comair’s and Mellon Bank’s management of the 401-k when they designated Delta stock as a prudent investment option for employees and retirees. During the period covered by the lawsuit, December 31, 2004 through March 21, 2006, Delta experienced severe financial difficulties, the value of its stock decreased, and the defendants understood that Delta likely would seek bankruptcy protection, causing Delta stock to lose substantially all of its value.

The settlement requires Comair and Mellon to pay $1,875,000.00. The 401-k will allocate the money to Comair employees and retirees in proportion to the amount of Delta stock they maintained in their individual 401-k accounts during the period covered by the lawsuit. This amount is in addition to the amount employees and retirees received for each share of Delta stock they owned in their individual 401-k accounts on March 21, 2006—the day that Comair eliminated Delta stock as an investment option.

As required by United States Department of Labor regulations, a highly respected and independent fiduciary reviewed the settlement to verify that it was in the best interests of Comair employees and retirees. The fiduciary recommended that the Court approve the settlement, stating “there is no dispute that the settlement achieved significant value for the class.” The fiduciary concluded that the “settlement fund of $1.875 million, which was agreed to after arm’s length negotiations, is a significant recovery in light of the major risks presented by this case.”