Southwest Airlines Co. (NYSE: LUV) Investor Securities Class Action Lawsuit 02/20/2020

If you purchased a significant amount of shares of Southwest Airlines Co. (NYSE: LUV) between February 7, 2017, and June 25, 2019, and / or if you purchased any NYSE: LUV shares prior to February 2017 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 20, 2020. NYSE: LUV investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Southwest Airlines
Case Name: 
Southwest Airlines Shareholder Class Action Lawsuit 02/20/2020
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: LUV
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/20/2020
Class Period Begin: 
02/07/2017
Class Period End: 
06/25/2019
Court of Filing: 
U.S. District Court for the Northern District of Texas
Deadline To File for Lead: 
04/20/2020
Summary: 

An investor in shares of Southwest Airlines Co. (NYSE: LUV) filed a lawsuit in the U.S. District Court for the Northern District of Texas over alleged violations of Federal Securities Laws by Southwest Airlines Co. in connection with certain allegedly false and misleading statements made between February 7, 2017, and June 25, 2019.

Dallas, TX based Southwest Airlines Co. operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. Southwest Airlines Co. reported that its annual Total Revenue rose from $21.14 billion in 2017 to $21.96 billion in 2018 and that its Net Income declined from $3.35 billion in 2017 to $2.46 billion in 2018.

On April 17, 2018, news sources reported that a Southwest plane had blown an engine, which exploded and caused shrapnel to strike the plane. The explosion resulted in the death of one passenger, who was partially pulled through a large hole as the cabin suffered rapid decompression, 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 April 19, 2018, during pre-market hours, 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 June 21, 2018, near the end of the trading session, news sources reported that eight passengers were suing Southwest in connection with the engine explosion in April 2018.

On June 25, 2019, during after-market hours, 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 Airlines Co., 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.

According to the complaint the plaintiff alleges on behalf of purchasers of Southwest Airlines Co. (NYSE: LUV) common shares between February 7, 2017, and June 25, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 7, 2017, and June 25, 2019, the defendants made false and/or misleading statements and/or failed to disclose that Southwest’s operations were non-compliant with government maintenance and safety regulations, that the foregoing issues were exacerbated by Southwest’s undue influence over FAA officials and, consequently, lax regulatory oversight of the Company’s operations, that all of the foregoing significantly increased the safety risks to passengers traveling on Southwest flights and heightened governmental scrutiny into the Company, and that as a result, the Company’s public statements were materially false and misleading at all relevant times.