Citibank Airline Miles Taxable Value Settlement

Settlement Structure: Claims Made

Active: Closed

Closed Settlement Statement:

According to court documents, the claim submission deadline has passed. Please contact the claims administrator if you have any questions.

Case Summary:

This settlement resolves a class action in which the plaintiffs claimed that Citibank did not properly disclose to customers that it would report the value of promotional American Airline miles awarded to them to the IRS as taxable income by issuing IRS Form 1099s. The complaint contends that the miles are not income, that they should not have been reported as such, and that Citibank also overvalued the miles. 

Docket Number:


Company: Citigroup

Filing Deadline: November 27, 2017

Class Period: January 1, 2009 to July 13, 2017

Objection Deadline: October 11, 2017

Exclusion Deadline: October 11, 2017

Final Approval Hearing: January 31, 2018

Proof of Purchase:

No; class members will be confirmed through Citibank’s records.


You may be eligible if

  • You received an IRS Form 1099 from Citibank
  • Because you opened a Citibank deposit account and received American Airlines miles as a promotional award
  • For which Citibank valued the miles at 2.5 cents per mile
  • Between January 1, 2009 and July 13, 2017. 
Typical Settlement Amount:

If you reported the miles as income and paid taxes on them based on the IRS Form 1099, your award will be calculated by multiplying up to 70% of the reported income by your tax rate, up to $245. If you did not report the miles as income and pay taxes on them, you may receive a settlement award of up to $40. Amounts may be reduced based on the number of valid claims received.

Total Settlement Amount: $1,750,000

Class Representative Proposed Incentive Fee:


Law Firms:
Law Office of James C. Kelly
Schoengold & Sporn PC

Claim Form: Hirsch Airline Miles Settlement Claim Form

Case Name: Hirsch v. Citibank, NA

Settlement Website: Hirsch Airline Miles Settlement Website

Claims Administrator:
Rust Consulting

Claims Administrator Contact Information:

Hirsch Airline Miles Settlement
c/o Rust Consulting Inc.
Settlement Administrator – 5671
P.O. Box 2599
Faribault, MN 55021-9599

Tags: Overvaluing Perqs Awards Etc. When Reporting as Income, Reporting as Income Money that Is Not Income, Your Money