Carnival Corporation Class Action Lawsuit
- Company Name
- Carnival Corporation
- Stock Symbol
- Class Period
- January 28, 2020 to May 1, 2020
- Southern District of Florida
The Carnival Corporation class action lawsuit charges Carnival and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Carnival securities between January 28, 2020 and May 1, 2020, inclusive (the “Class Period”). The Carnival class action lawsuit was commenced on May 27, 2020 in the Southern District of Florida and is captioned Service Lamp Corp. Profit Sharing Plan v. Carnival Corp., No. 20-cv-22202.
Carnival bills itself as the world’s largest leisure travel company and the largest cruise company, carrying nearly 45% of global cruise guests.
The Carnival class action lawsuit alleges that defendants failed to disclose that: (1) Carnival’s medics were reporting increasing events of COVID-19 illness on Carnival’s ships; (2) Carnival was violating port-of-call regulations by concealing the amount and severity of COVID-19 infections on board its ships; (3) in responding to the outbreak of COVID-19, Carnival failed to follow Carnival’s own health and safety protocols developed in the wake of other communicable disease outbreaks; (4) by continuing to operate, Carnival ships were responsible for continuing to spread COVID-19 at various ports throughout the world; and (5) as a result of the foregoing, defendants’ positive statements about Carnival’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On April 16, 2020, when Carnival still had two of its cruise ships at sea, Bloomberg Businessweek published an article, titled “Carnival Executives Knew They Had a Virus Problem, But Kept the Party Going,” which revealed that Carnival may have failed to adequately protect passengers from COVID-19 on a series of cruises and indeed continued to allow new cruise ship departures despite its knowledge of the proliferation of COVID-19. On this news, Carnival’s stock price fell more than 4%.
Then, on May 1, 2020, The Wall Street Journal published an article, titled “Cruise Ships Set Sail Knowing the Deadly Risk to Passengers and Crew,” which detailed how cruise ships, including Carnival ships, facilitated the spread of COVID-19 and provided new facts about early warning signs Carnival and its cruise lines possessed and Carnival’s related COVID-19 disclosure failures. The article also noted that testimony from an investigation in Australia revealed that Carnival and its cruise lines may have misled shore officials by concealing passengers and crew exhibiting COVID-19 symptoms before docking. On the same day, it was revealed that the Chair of the House Committee on Transportation and Infrastructure and the Chair of the House Subcommittee on Coast Guard and Maritime Transportation had initiated a records request regarding the response of Carnival to COVID-19 and other infectious disease outbreaks aboard cruise ships. On this news, Carnival’s share price fell more than 12%, further damaging Carnival investors.
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