Shareholders sue Royal Caribbean Cruises over pandemic
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Shareholders have filed a putative class-action securities lawsuit charging Royal Caribbean Cruises Ltd. and its corporate officers with securities law violations in connection with the COVID-19 pandemic.
The shareholders contend the Miami-based cruise line made false and misleading statements about the pandemic’s impact and had lax safety protocols, according to City of Riviera Beach General Employees Retirement System vs. Royal Caribbean Cruises Ltd., Richard Fain, Jason Liberty, and Michael Bayley.
The Riviera Beach, Florida-based pension plan filed the suit Wednesday in U.S. District Court in Miami. It was first reported by the D&O diary.
The lawsuit states that during the first quarter, 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 the Company,” while the cruise line assured the investing public its safety protocols were aggressive and would ultimately contain the virus. Two lawsuits have been filed against the company for allegedly failing to protect its crewmembers, the complaint said.
The lawsuit, which charges the cruise line with violating securities law, notes the company’s stock price dropped significantly during the first quarter. The company suspended its cruises in March.
A company spokesman could not be reached for comment.
Comparable lawsuits have been filed against Norwegian Cruise Lines Holdings Ltd. and Carnival Corp., both of which are Miami-based.
