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 Northern District of Texas on behalf of those who acquired Southwest Airlines Co. (“Southwest” or the “Company”) (NYSE: LUV) securities during the period from February 7, 2017 through June 25, 2019. Investors have until April 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Southwest’s operations were non-compliant with government maintenance and safety regulations; (ii) the foregoing issues were exacerbated by Southwest’s undue influence over FAA officials and, consequently, lax regulatory oversight of the Company’s operations; and (iii) all of the foregoing significantly increased the safety risks to passengers traveling on Southwest flights and heightened governmental scrutiny into the Company.
On April 17, 2018, news sources reported that a Southwest plane had blown an engine. The explosion resulted in the death of one passenger and injured seven others. According to the Chairman of the National Transportation Safety Board, the incident marked the first passenger fatality in a U.S. airline accident since 2009, and that, out of twenty-four fan blades in the engine at issue, one was missing. On this news, Southwest’s stock price fell $0.62, or 1.1%, to close at $54.27 per share on April 17, 2018.
On April 19, 2018, the FAA announced that it would order inspections of at least 220 aircraft engines as investigators are focusing on a broken fan blade in an engine that exploded. According to news sources, the order was initially proposed in August 2016, following the earlier incident in which engine failure had also resulted from a broken fan blade. Critics also reportedly questioned why the FAA had not acted sooner in conjunction with their European counterparts. On this news, Southwest’s stock price fell $1.02, or 1.8%, to close at $54.80 per share on April 19, 2018.
On June 21, 2018, news sources reported that eight passengers were suing Southwest in connection with the engine explosion in April 2018. On this news, Southwest’s stock price fell $1.24, or 2.3%, to close at $51.91 per share on June 22, 2018.
Finally, on June 25, 2019, the Wall Street Journal published an article entitled “FAA Reassigns Senior Managers in Office Overseeing Southwest Airlines,” which reported that the FAA had removed three senior managers in the office overseeing Southwest amid allegations of lax safety enforcement raised by agency whistleblowers and various resulting government inquiries. The article also noted that “[t]he [DOT]’s inspector-general has been looking into some of the safety issues for many months . . . including lapses by the airline in documenting maintenance for more than 100 of its jets, as well as failures to reliably compute the weight of checked baggage and hazardous landing incidents in which one aircraft smacked a wingtip on the tarmac and another ran off the strip in stormy weather.” On this news, Southwest’s stock price fell $0.30, or 0.6%, to close at $50.70 per share on June 26, 2019.
If you acquired Southwest securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.