Continental Sues Nine Pilots For Allegedly Faking Divorces
Continental Airlines is suing nine pilots for allegedly faking their own divorce. According to the lawsuit, nine pilots divorced their spouses, who were named as beneficiary for their pensions, and then remarried the same person after they started recieving payouts.
The pilots and their spouses attempted to take advantage of a loophole that allows an ex-spouse to receive all or a portion of a pension fund after a divorce of divorce.
The lawsuit alleges that the pilots divorced their spouses to have "access to lump sum distributions of their pensions without having to retire or otherwise separate from active employment."
Continental is asking for the pension money back plus interest.
Perhaps the pilots justified their behavior by saying that if they didn't act they may not receive a pension at all. That's what happened to pilots at other airlines. Pilots for other airlines such as United, US Airways, and Delta lost most of their pensions after those airlines filed for bankruptcy.