COMPLAINT FILED AGAINST CARNIVAL CRUISE LINE OVER COVID: Nationally Ranked Litigation Firm Labaton Sucharow Announces Complai...
May 29 2020 - 9:55AM
Business Wire
Labaton Sucharow LLP, a leading and award winning investor
rights law firm, announces a securities class action complaint has
been filed on behalf of purchasers of Carnival Cruise Line (Ticker:
CCL) securities resulting from allegations that Carnival may have
issued materially misleading business information to the investing
public.
Carnival is purported to be the world’s largest leisure travel
company and among the most profitable and financially strong in the
cruise and vacation industries. The company claims to be the
largest cruise company, carrying nearly 45 percent of global cruise
guests, and a leading provider of vacations to all major cruise
destinations throughout the world. With operations in North
America, Australia, Europe and Asia, Carnival claims to operate a
portfolio of leading global, regional and national cruise brands
that sell tailored cruise products, services and vacation
experiences on 104 cruise ships.
The Complaint alleges that throughout the Class Period, Carnival
and its management made materially false and/or misleading
statements, and/or failed to disclose material adverse facts about
the Company’s business, operations, and prospects. Specifically,
Carnival failed to disclose to investors that: (1) the Company’s
medics reported increasing events of COVID-19 illness on the
Company’s ships; (2) Carnival had violated port of call regulations
by concealing the amount and severity of COVID-19 infections
onboard its ships; (3) in responding to the outbreak of COVID-19,
Carnival failed to follow the Company’s health and safety protocols
developed in the wake of other communicable disease outbreaks; (4)
by continuing to operate, Carnival ships were responsible for
continuing to spread COVID-19 at various ports throughout the
world; and (5) as a result of the foregoing, Defendants’ positive
statements about the Company’s business, operations, and prospects,
were materially misleading and/or lacked a reasonable basis.
On April 16, 2020, when Carnival still had at sea two (2) of its
cruise ships, Bloomberg Businessweek published an article titled
“Carnival Executives Knew They Had a Virus Problem, But Kept the
Party Going.” In that article, it was revealed that Carnival may
have failed to adequately protect passengers from COVID-19 on a
series of cruise voyages, and indeed continued to operate new
cruise departures despite its knowledge that the threat posed by
COVID-19 had materialized on its ships and was likely to
proliferate further.
On this news, the Company’s share price fell $0.53 per share
from a prior close of $12.38 per share to close at $11.85 per share
on April 16, 2020.
Then, on May 1, 2020, The Wall Street Journal published an
article titled “Cruise Ships Set Sail Knowing the Deadly Risk to
Passengers and Crew.” That article detailed how cruise ships,
particularly Carnival ships, facilitated the spread of COVID-19,
and provided new facts on early warning signs Carnival and its
affiliated cruise lines possessed and the Company’s disclosure
failures. Further, the article also noted that The House Committee
on Transportation and Infrastructure had requested documents from
Carnival related “to Covid-19 or other infectious disease outbreaks
aboard cruise ships” and that testimony from a separate
investigation in Australia revealed that Carnival and its
affiliated cruise lines may have misled shore officials by
concealing those exhibiting COVID-19 symptoms before docking.
On this news, the Company’s share price fell $1.97 per share
from a prior close of $15.90 per share to close at $13.93 per share
on May 1, 2020.
If you are a stock, option or derivative holder that suffered
losses in Carnival, and wish to participate, learn more, or discuss
the issues surrounding the investigation, please contact David J.
Schwartz using the toll free number (800) 321-0476 or via email at
recover@labaton.com.
About the Firm
Labaton Sucharow LLP is one of the world’s leading complex
litigation firms representing clients in securities, antitrust,
corporate governance and shareholder rights, and consumer
cybersecurity and data privacy litigation. Labaton Sucharow has
been recognized for its excellence by the courts and peers, and it
is consistently ranked in leading industry publications. Offices
are located in New York, NY, Wilmington, DE, and Washington, D.C.
More information about Labaton Sucharow is available at
http://www.labaton.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200529005380/en/
David J. Schwartz (800) 321-0476 dschwartz@labaton.com or
recover@labaton.com
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