American Airlines 2006 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2006 American Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

24
On August 21, 2006, a patent infringement lawsuit was filed against American and American Beacon Advisors,
Inc. (a wholly-owned subsidiary of the Company), in the United States District Court for the Eastern District of
Texas (Ronald A. Katz Technology Licensing, L.P. v. American Airlines, Inc., et al.). The plaintiff alleges that
American and American Beacon infringe a number of the plaintiff’s patents, each of which relates to automated
telephone call processing systems. The plaintiff is seeking past and future royalties, injunctive relief, costs and
attorneys' fees. Although the Company believes that the plaintiff’s claims are without merit and is vigorously
defending the lawsuit, a final adverse court decision awarding substantial money damages or placing material
restrictions on existing automated telephone call system operations would have a material adverse impact on the
Company.
American is defending a lawsuit (Kelley Kivilaan v. American Airlines, Inc.), filed on September 16, 2004 in the
United States District Court for the Middle District of Tennessee. The suit was brought by a flight attendant who
seeks to represent a purported class of current and former flight attendants. The suit alleges that several of the
Company’s medical benefits plans discriminate against females on the basis of their gender in not providing
coverage in all circumstances for prescription contraceptives. Plaintiff seeks injunctive relief and monetary
damages. The case has not been certified as a class action, but we anticipate that a motion for class certification
will be filed in the first quarter of 2007. American will vigorously defend this lawsuit; however, any adverse
judgment could have a material adverse impact on the Company.