MIAMI (Legal Newsline) – A Florida city is suing Royal Caribbean Cruises, claiming its investment in the company has turned sour.
The City of Riviera Beach General Employees Retirement System has hired the firms Saxena White and Labaton Sucharow to file suit against Royal Caribbean in Miami federal court.
Riviera Beach hopes to represent a class of shareholders who bought stock from Feb. 4 through March 17 of this year. It blames the company with not adjusting to the loss of revenue because of the coronavirus.
“Defendants made false and/or misleading statements and failed to disclose material adverse facts about the company’s decrease in bookings outside China and its inadequate policies and procedures to prevent the spread of COVID-19 on its ships,” the lawsuit says.
“Defendants caused Royal Caribbean stock to trade at artificially high prices during the class period.”
The lawsuit notes Royal Caribbean’s stock traded at $117 per share in mid-February but dropped to $22.33 by March 18. In addition to the loss in revenue, the company also faced litigation from more than 1,000 crew members.