Lawsuit Seeks Refund for Clear Subscribers

One week after shutting its doors, airport security provider Clear has been hit with a class-action lawsuit.

By Robert McMillan

Wed, July 01, 2009 — IDG News Service — One week after shutting its doors, airport security provider Clear has been hit with a class-action lawsuit.

The suit, filed against Clear's parent company, Verified Identity Pass, seeks restitution for customers, who were being charged for Clear's services right up to the day the company shut its doors.

The suit was filed Monday in U.S. District Court for the Southern District of New York. It was filed by Schneider Wallace Cottrell Brayton Konecky, a San Francisco law firm that specializes in class-action lawsuits.

Founded in 2005, Clear pre-screened frequent fliers -- taking fingerprints, iris scans and credit information -- in order to give them a fast track through the U.S. Transportation Security Administration's airport screening lines. It operated what's known as a Registered Traveler program in about 20 airports and boasted more than 260,000 customers.

Last Monday, Clear abruptly shut down its kiosks, leaving them unattended and forcing customers to fend with the normal airport security lines.

Clear, which hasn't yet filed for bankruptcy protection, has since told customers that it doesn't have the cash to refund the US$199 annual fee it charged them.

In court filings, lawyers representing the plaintiffs in the class-action lawsuit called this a "cut-and-run gambit," and asked the court to award refunds and punitive damages.

However, the lawsuit doesn't address the biggest concern raised by Clear's customers: What happens to their data?

Clear has said that it will notify users when it deletes their information, but in a note posted to its Web site last week, it also indicated that the data could be sold to another Registered Traveler provider. Such providers are accredited by the TSA.

A Clear representative couldn't immediately be reached for comment.

Clear

Loading...
Security MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Retooling IT for a Mobile Workforce
Check out this research note from IDC for guidance. Learn more »
Today's Risky Data Environment
This paper explains how an IT and security service provider can provide a practical, manageable and reliable solution. Learn more »
Business Continuity - Are You Always Open for Business?
This Oracle business brief explains how mid-sized can improve performance by creating an IT infrastructure that makes working faster, easier and more effective. Learn more »
 
SPONSORED LINKS
 

Making Consumer Two-Factor Authentication Simple and Cost-Effective

Mining the Cloud to Ease the Enterprise Compliance Burden

Solve Five Key IT Security Challenges with Cloud-Based Authentication

White Paper: Managed Security for a Not-So-Secure World

Secure Email and Web-Based Communication from Evolving Attacks

WagerWorks Takes Fraudsters Out of the Game using iovation

White Paper: A Security Blueprint Delivered From within the Network

Return on Information: Google Enterprise Search pays you back

Cut Costs & Green Your IT Operations with PC Power Management

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

White Paper: Legacy Tools: Not Built for the Helpdesk

Taking a Seat at the Executive Table: The Reality of Virtualization

White Paper: Next Generation Remote Infrastructure Management

Seven Design Requirements for Web 2.0 Threat Protection

Increase UPS efficiency without sacrificing protection.

Learn how advanced forecasting tools can deliver significant business results for global corporations.

Lower IT Costs with Oracle Database 11g Release 2

White Paper: Visibility and the New Normal of Mobile Work

Taking the Service Desk to the Next Level

Learn about The Information Technology Infrastructure Library.

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

Top Five CIO Challenges

Authentication as a Service by Forrester Research

Cloud-Based Authentication for Next-Generation Extranets

Mobile Security: The Essential Ingredient for Today's Enterprise

IDC White Paper: CCM for IT Compliance and Risk Management

Keeping Your Members Safe from Online Scams and Predators

Learn about the growing threat of insider data theft.

Upgrading to VMware vSphere with vWire

Maximizing website Return on Information with high-quality search

See how AT&T can help protect your network.

Webcast: Unleashing the Power of Customer Data

White Paper: 5 Best Practices for Smartphone Support

Global Research: CIOs Weigh In On Virtualization

5 Key Virtualization Management Challenges

The Total Economic Impact of Network Security Intrusion Prevention

Generation Remote Infrastructure Management - Changing the Paradigm

Cloud-Based Email Management: Opinion Shifts In Favor

eBook: How Can You Make Your People Productive Anywhere?

Achieving Business Agility with Application Grid

Ready to virtualize tier one applications? Check your virtualization maturity.

Seven Ways ITIL Can Help You in an Economic Downturn

Tips for successful virtualization management.

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Streamline IT Costs. Boost Performance with WAN Optimization.

 
 
RESOURCE CENTER