Southwest Airlines Co.
Lead Plaintiff Deadline: 04/20/2020
SUMMARY OF CASE:
A securities class action has been filed against Southwest Airlines Co. (LUV) on behalf of all persons who purchased or otherwise acquired Southwest Airlines between February 7, 2017 through June 25, 2019. This case has been filed in the USDC – N.D. Tex.
Southwest Airlines Co. (“Southwest” or the “Company”) was founded in 1967 and is based in Dallas, Texas. The Company operates a passenger airline that provides scheduled air transportation services in the U.S. and near-international markets. Southwest is regulated by, among other government entities, the FAA, which is a sub-agency of the DOT that regulates civil aviation in the U.S. and its surrounding international waters. Southwest’s operations have been plagued by non-compliance and maintenance issues with its flight services for over a decade, often exacerbated by the Company’s repeated denials of wrongdoing and self-touted remediation efforts.
Despite continued headlines regarding these issues, Southwest has continually denied any wrongdoing, while asserting it has remained compliant with applicable government maintenance and safety regulations.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Southwest’s operations were non-compliant with government maintenance and safety regulations; (ii) the foregoing issues were exacerbated by Southwest’s undue influence over FAA officials and, consequently, lax regulatory oversight of the Company’s operations; (iii) all of the foregoing significantly increased the safety risks to passengers traveling on Southwest flights and heightened governmental scrutiny into the Company; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.