LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who 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 suffered a loss on your Southwest Airlines investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/southwest-airlines-co-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
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.
If you purchased or otherwise acquired 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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