The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Southwest Airlines Co. (“Southwest Airlines” or the “Company”) (NYSE: LUV) securities between June 13, 2020 and December 31, 2022, inclusive (the “Class Period”). Southwest Airlines investors have until March 13, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On December 22, 2022, Southwest Airlines began to cancel flights in the aftermath of a winter storm. In the following days, the airline cancelled 15,004 flights – more than half of its typical flight schedule – and by December 28, about 87% of all cancelled flights in the US were from Southwest Airlines alone. The Transport Workers Union president stated that she and other labor leaders had repeatedly told management that Southwest Airlines’ scheduling technology is not good enough, with a “complicated” model for assigning flights and an “antiquated internal system” used for managing and staffing trips.
On this news, Southwest Airlines’ stock price fell $2.15, or 10.8%, over two consecutive trading days to close at $32.19 per share on December 28, 2022, thereby injuring investors.
Then, on December 31, 2022, The New York Times, published an article discussing the “open secret” within Southwest Airlines that it needed to modernize is scheduling systems, and that software shortcomings had “contributed to previous, smaller-scale meltdowns.”
On this news, Southwest Airlines’ stock price fell $1.70, or 3.2%, to close at $32.60 per share on January 3, 2023, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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) it did not discuss how it’s unique point-to point service and aggressive flight schedule could leave it prone in the event of inclement weather; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Southwest Airlines securities during the Class Period, you may move the Court no later than March 13, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Southwest Airlines securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Southwest Airlines Co. (LUV) Investors
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007