Sure, but the fact that the contract they signed upon buying their ticket allows for the airline to bump them and only pay them 2 times their ticket poses a problem for the suit.
Edit. I just read your second statement so ignore my response below.
Below is just useful information to help anyone else to learn about their consumer rights as an airline passenger.
A company's contract or policy does not trump business laws. There are some loopholes available Straight from the DOT's website. Highlighted in read is your right as a consumer in the U.S.
"Airlines may offer free tickets or dollar-amount vouchers for future flights in place of a check for denied boarding compensation. However, if you are bumped involuntarily you have the right to insist on a check if that is your preference. Once you cash the check (or accept the free flight), you will probably lose the ability to pursue more money from the airline later on. However, if being bumped costs you more money than the airline will pay you at the airport, you can try to negotiate a higher settlement with their complaint department. If this doesn't work, you usually have 30 days from the date on the check to decide if you want to accept the amount of the check.
You are always free to decline the check (e.g., not cash it) and take the airline to court to try to obtain more compensation. DOT's denied boarding regulation spells out the airlines' minimum obligation to people they bump involuntarily. Finally, don't be a "no-show." If you are holding confirmed reservations you don't plan to use, notify the airline. If you don't, they will cancel all onward or return reservations on your trip."
This guy sued and won for being bumped.
See how it played out.
From the link "
The rules provide that a passenger who has a reservation and who is asked to give up their seat because the flight is overbooked is entitled to a lot of money and the airline is required to fill them in on their rights right away. In writing."
"
It also does not look like they told him about his compensation rights.
Unfortunately, this is a typical game all of the airlines play. They start offering compensation and travel that is less than what is required under the FAA rule hoping that people who haven't been properly informed about their rights will take the cheap offer. When this doesn't work they slowly raise the offers."
Some more information about your rights as an airline passenger.
The key thing is to know your rights as a consumer. In the case of the Dao and United, news has come out that they flight wasn't overbooked, which puts a new twist on everything. (
source). The good news is that we will probably see new regulations involving this practice