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Carnival Corporation Class Action Lawsuit

Case Summary

Company Name
Carnival Corporation
Stock Symbol
CCL
Class Period
January 28, 2020 to May 1, 2020
Court
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.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: January 28, 2020 - May 1, 2020
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