BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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.
Investors suffering losses on their Southwest Airlines investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
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 its 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 its 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 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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