By what date were all settlement benefits distributed to the class in the Daniel Klein case against Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
practices. The case was settled with ABG paying $3.25 million on June 2, 2016.
Daniel Klein and Stephanie Klein, on behalf of themselves and others similarly situated v. Budget Rent A Car System, Inc. and Avis Budget Car Rental, LLC (United States District Court for the District of New Jersey, Case No. 2:12-CV-07300-JLL-MAH). On November 27, 2012, Plaintiffs Daniel Klein and Stephanie Klein, participants in Budget's travel rewards program ("Travel Rewards Program"), filed a putative class action against ABCR and Budget, alleging a failure to adequately disclose to participants in the Travel Rewards Program that defendants impose a surcharge for frequent flyer miles earned through online rental transactions. Plaintiffs have asserted claims for violations of the New Jersey Consumer Fraud Act, breach of contract, breach of implied covenant of good faith and fair dealing, and seek monetary damages, and injunctive and declaratory relief. The District Court granted final approval to a class action settlement in this matter on June 21, 2016. Pursuant to the district court's final approval order, payment of $3,050,000 in attorneys' fees and $10,000 in incentive awards was paid by ABG on December 5, 2
Source: Item 3 — LITIGATION (FDD pages 12–16)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Daniel Klein and Stephanie Klein case, a class action lawsuit, was settled with final approval by the District Court on June 21, 2016. The lawsuit alleged that Budget failed to adequately disclose surcharges for frequent flyer miles earned through online rental transactions in its Travel Rewards Program.
As part of the settlement, Avis Budget Group (ABG) paid $3,050,000 in attorneys' fees and $10,000 in incentive awards on December 5, 2016. The distribution of all settlement benefits to the class members was completed by February 20, 2017.
This information is relevant to potential Budget franchisees as it provides insight into the types of legal challenges Budget has faced and the associated costs. Franchisees should be aware of the potential for litigation and the importance of clear and transparent communication with customers regarding fees and surcharges.