Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Southwest Airlines Co. (LUV)
As a result, Southwest Airlines cancelled thousands of flights, accounting for the vast majority of domestic flight cancellations.
NEW YORK, Jan. 16, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased the securities of Southwest Airlines Co. (“Southwest” or the “Company”) (NYSE: LUV) between June 13, 2020 and December 31, 2022, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Southwest Airlines continuously downplayed or ignored the serious issues with the technology it used to schedule flights and crews, and how it stood to be affected worse than other airlines in the event of inclement weather; and (2) Southwest Airlines did not discuss how its unique point-to-point service and aggressive flight schedule could leave it prone to greater cancellations in the event of inclement weather.
During the 2022 winter season, storms disrupted the holiday travel season. As a result, Southwest Airlines cancelled thousands of flights, accounting for the vast majority of domestic flight cancellations. Thereafter, on December 26 and December 27, 2022, several news outlets published various articles detailing Southwest Airlines’ operational meltdown. For example, Business Insider published an article entitled “US Department of Transportation says it plans to look into Southwest Airlines following the airline’s ‘unacceptable’ holiday flight cancellations.” On this news, Southwest Airlines’ stock price dropped more than 12%.
Then, on December 31, 2022, The New York Times published an article entitled “The Shameful Open Secret Behind Southwest’s Failure,” which discussed how it was an “open secret” within Southwest Airlines that it needed to modernize its scheduling systems. On this news, Southwest Airlines’ stock price declined, further damaging investors.
Investors who purchased or otherwise acquired shares of Southwest should contact the Firm prior to the March 13, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
