Royal Caribbean Cruises Ltd. Class Action Lawsuit
- Company Name
- Royal Caribbean Cruises Ltd.
- Stock Symbol
- Class Period
- February 4, 2020 to March 17, 2020
- Motion Deadline
- December 6, 2020
- Southern District of Florida
The Royal Caribbean Cruises Ltd. class action lawsuit charges Royal Caribbean and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Royal Caribbean securities between February 4, 2020 and March 17, 2020, inclusive (the “Class Period”). The Royal Caribbean class action lawsuit was commenced on October 7, 2020 in the Southern District of Florida and is captioned City of Riviera Beach General Employees Retirement System v. Royal Caribbean Cruises Ltd., No. 20-cv-24111.
Royal Caribbean is the world’s second largest cruise company. In the first quarter of 2020, hundreds of COVID-19 cases were reported on at least 13 Royal Caribbean ships, which later resulted in multiple fatalities and wrongful death lawsuits against Royal Caribbean. Meanwhile, Royal Caribbean assured the investing public that its safety protocols were “aggressive” and would “ultimately contain the virus.”
The Royal Caribbean class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements about Royal Caribbean’s decrease in bookings outside China and its inadequate policies and procedures to prevent the spread of COVID-19 on its ships. Specifically, regarding global bookings, the Royal Caribbean class action lawsuit alleges that Royal Caribbean made statements that: (1) misled investors to believe that any issue related to COVID-19 was relatively insignificant; (2) falsely assured investors that bookings outside China were strong with no signs of a slowdown; and (3) failed to disclose that Royal Caribbean was experiencing material declines in bookings globally due to customer concerns over COVID-19. Additionally, regarding safety procedures, the Royal Caribbean class action lawsuit alleges that Royal Caribbean made statements that: (1) falsely assured investors that it had implemented rigorous safety protocols; (2) such protocols were expected to ultimately contain the spread of the virus; and (3) failed to disclose that its ships were following grossly inadequate protocols that would foster the spread of COVID-19 and pose a substantial risk to passengers and crews.
On February 13, 2020, Royal Caribbean disclosed that it had cancelled 18 voyages in Southeast Asia due to recent travel restrictions. Royal Caribbean also warned that, “[w]hile the early impact due to concerns about the coronavirus is mainly related to Asia, recent bookings for our broader business have also been softer.” On this news, Royal Caribbean’s stock price fell more than 3%. Then, on February 25, 2020, Royal Caribbean revealed that “efforts by China and other countries . . . to contain the spread of the disease ha[d] adversely impacted [its] business, including a drop in demand for cruises.” Royal Caribbean continued, stating: “These concerns and restrictions over the outbreak are impacting our bookings and are having, and are likely to continue to have, a material impact on our overall financial performance.” On this news, Royal Caribbean’s stock price fell more than 14% over the following two trading sessions.
Thereafter, on March 10, 2020, Royal Caribbean withdrew its 2020 financial guidance, increased its revolving credit facility by $550 million, and announced that it would take cost-cutting actions due to the proliferation of COVID-19. On this news, Royal Caribbean’s stock price fell more than 14%. The following day, on March 11, 2020, Carnival Corporation, Royal Caribbean’s largest competitor, announced a 60-day suspension of all operations, prompting concern that Royal Caribbean would follow suit. Royal Caribbean also cancelled two cruises, the beginning of a series of cancellations and suspensions that would follow. On this news, Royal Caribbean’s stock price fell almost 32%.
Two days later, on March 13, 2020, Royal Caribbean announced a suspension of all U.S. cruises for 30 days. The next day, on March 14, 2020, Royal Caribbean announced that it would suspend global operations for 30 days. On this news, Royal Caribbean’s stock price fell more than 7%. The following week, on March 16, 2020, Royal Caribbean revealed that its global operations could be suspended longer than anticipated, announcing the cancellations of two additional cruises throughout April and into May. On this news, Royal Caribbean’s stock fell more than 7%.
Finally, the financial impact of Royal Caribbean’s alleged false and misleading statements and/or omissions was revealed as analysts downgraded Royal Caribbean’s stock and slashed their price targets. For example, on March 18, 2020, Stifel Nicolaus cut its one-year price target on Royal Caribbean from $161 to $40. On this news, Royal Caribbean’s stock price fell more than 19%, further damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Royal Caribbean securities during the Class Period to seek appointment as lead plaintiff in the Royal Caribbean class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Royal Caribbean class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Royal Caribbean class action lawsuit. An investor’s ability to share in any potential future recovery of the Royal Caribbean class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Royal Caribbean class action lawsuit or have questions concerning your rights regarding the Royal Caribbean class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Royal Caribbean class action lawsuit must be filed with the court no later than December 7, 2020.
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.