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Southwest Airlines Co.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Texas on behalf of those who acquired Southwest Airlines Co. (“Southwest” or the “Company”) (NYSE: LUV) securities between June 13, 2020 through December 31, 2022 (the “Class Period”). Investors have until March 13, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
Southwest is a domestic airline that provides primarily short-haul, high-frequency, and point-to-point services.
 
On December 26, 2022, Business Insider published an article about Southwest Airlines entitled “U.S. Department of Transportation says it plans to look into Southwest Airlines following the airline’s unacceptable holiday flight cancellations.” The article highlighted that the Department of Transportation had announced that it would examine “whether cancellations were controllable,” and whether Southwest Airlines was complying with its stated customer service plan, after reports of a lack of prompt customer service in the wake of cancellations.” Then, on December 27, 2022, Reuters published an article entitled “Southwest cancels thousands more flights; U.S. Government Vows Scrutiny.” This article quoted Casey Murray, president of the Southwest Airlines Pilots Association (the "SWAPA"), who said “Southwest is using outdated technology and processes, really from the ‘90s, that can’t keep up with the network complexity today.” On this news, the price of Southwest shares declined by $2.15 per share, or approximately 5.96%, from $36.09 per share to close at $33.94 on December 27, 2022.
 
On December 31, 2022, The New York Times published an article entitled “The Shameful Open Secret Behind Southwest’s Failure,” which discussed how it was an “open secret” within Southwest Airlines that it desperately needed to modernize its scheduling systems. In particular, the article discussed how software shortcomings had “contributed to previous, smaller-scale meltdowns,” and that Southwest Airlines worker unions had warned the Company about the software at various times before the Company’s meltdown over the 2022 holiday season. On this news, the price of Southwest shares declined by $1.07, or approximately 3.18%, from $33.67 per share to close at $32.06 on January 3, 2023.
 
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose 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 it’s unique point-to-point service and aggressive flight schedule could leave it prone in the event of inclement weather.
 

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