Delta Air Lines (DAL) agreed to pay about $78.8 million to settle a class action lawsuit accusing the company of dumping fuel in a January 2020 incident that doused tens of thousands of properties in two California counties, Reuters reported Wednesday, citing court papers.

The proposed preliminary settlement was filed this week in Los Angeles federal court and needs approval from a judge, according to the report.

In the incident, Delta Flight 89 to Shanghai from Los Angeles lost thrust after takeoff, and pilots jettisoned about 15,000 pounds of jet fuel before returning to Los Angeles International Airport to lower overweight emergency landing risks, the report said.

Delta denied wrongdoing, saying it settled to avoid litigation-related costs and uncertainty, according to the report. The airline said the pilots were later cleared of wrongdoing by a Federal Aviation Administration probe, the report added.

After legal fees and costs, the net settlement may amount to $50.6 million and will be distributed to affected owners or residents, the report said, citing court documents.

The airline didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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