MIAMI (Legal Newsline) – So far, two securities class action law firms have asked to lead litigation against Royal Caribbean Cruises that claims the company failed to disclose financial troubles associated with the COVID-19 pandemic.
Rosen Law on Dec. 7 filed a motion in Miami federal court to have its clients appointed lead plaintiffs and for it to join them as lead counsel in a consolidated action against the company, which is the world’s second-largest cruise business.
That same day, Levi & Korinsky filed a similar request. No motion has yet been filed by Labaton Sucharow, which is representing the Florida city of Riviera Beach.
Litigation blames the company for 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.”
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.