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BANKR. S.D.N.Y.Litigation

Google's $10 million bid for Spirit Airlines' de-identified data draws union objections, a privacy ombudsman's report and a rival micro1 bid; hearing moved to September 16

By LexCircuit Desk · · AI-drafted, human-reviewed

Spirit Airlines' bankruptcy sale of de-identified internal data to Google for $10 million, won at an August 14 auction over Mercor's $7.5 million, faces limited objections from the flight attendants', pilots' and machinists' unions, a consumer privacy ombudsman's report, and micro1's notice of a competing bid. Judge Sean Lane's approval hearing in the Southern District of New York, adjourned twice, is now set for September 16, with replies due September 14.

Filing (U.S. Bankruptcy Court, S.D.N.Y. (via Epiq)) → · Epiq (claims agent docket), Reuters, Bloomberg Law +2

Key points

  • At the August 14 auction Google bid $10 million and Mercor $7.5 million as backup; Google says the data will train its AI models.ReutersBloomberg Law
  • In scope per the sale notice: about 100 million emails, 500 million Teams messages, 30 million lines of code and employee records from 1986.Bloomberg LawForbes
  • AFA-CWA's August 18 limited objection says preserved links between records could let individuals be reconstructed; pilots, machinists and flight controllers joined or objected.Epiq (claims agent docket)NY Daily Record (Reuters)
  • micro1 filed notice on September 3 of a competing and superior bid; Forbes reports the offer at $12.5 million, made after the bid deadline.Epiq (claims agent docket)Forbes
  • Privacy ombudsman Lucy L. Thomson's report (ECF 1581) drew Google's September 9 reply: sale outside her role; PNR, refunds, onboard-purchase, timecard, WiFi datasets excluded.U.S. Bankruptcy Court, S.D.N.Y. (via Epiq)
  • Hearing adjourned from August 19 to September 9 and now to September 16 at 11:00 a.m. before Judge Lane; replies due noon September 14.U.S. Bankruptcy Court, S.D.N.Y. (via Epiq)

Sources7 articles across 6 outlets

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LitigationU.S.N.Y.Bankr. S.D.N.Y.BankruptcyData protectionTechnologyFor practitionersFor governance