Northwest Airlines Inc. settled a lawsuit against U.S. Bancorp a few days after filing its initial complaint.
The airline, now owned by Delta Air Lines Inc., sued U.S. Bancorp in late April to prevent it from converting frequent-flier cardholders from the Northwest WorldPerks reward program to a multiple-airline program.
U.S. Bancorp lost a cobranding contract with Northwest last year after the carrier was acquired by Delta, which has a longtime cobranding partner in American Express Co. The Minneapolis banking company reacted by introducing a "FlexPerks" rewards card that it has started sending to its cardholders. It also began notifying cardholders of the date on which they would start earning FlexPerks points, instead of Northwest WorldPerks points.
According to the complaint, which was filed on April 23 in the U.S. District Court for Minnesota, U.S. Bancorp breached its agreement with Northwest by its plan to switch cardholders from one points program to the other. But the case was settled, according to a May 4 filing in the court, which dismissed all claims "with prejudice and on the merits."
Teri Charest, a spokeswoman for U.S. Bancorp, said in an e-mail Thursday that "Northwest and U.S. Bank were able to resolve their differences on mutually agreeable terms back in May."
Those terms appear to include an opportunity for cardholders to earn both types of points after receiving their new FlexPerks cards. According to Charest, "For approximately 30 days after a cardholder begins earning FlexPerks points, he or she will also earn WorldPerks miles — whether he or she uses the new FlexPerks card or the current WorldPerks Visa card. … After the approximately 30-day period is over, the cardholder's WorldPerks Visa card will no longer allow charges, and the FlexPerks card will not earn WorldPerks miles."