Shareholders Sue Southwest For Mass Flight Cancellations
Updated: May 1
A shareholder class action lawsuit has been filed against Southwest Airlines in response to the operational disaster that resulted in nearly 17,000 canceled flights over the recent holiday travel season, and which is expected to cost the airline as much as $825 million. The Complaint, filed in federal court in Houston, alleges that the company made false and misleading statements and failed to disclose important information to shareholders. Specifically, the Complaint claims that the company downplayed or ignored serious issues with the technology it used to schedule flights and crews, and that it did not disclose how its unique point-to-point service and aggressive flight schedule could make it particularly vulnerable in the event of inclement weather. The Complaint further alleges that these omissions and misstatements caused the company's statements about its business, operations, and prospects to be materially false and misleading. The lawsuit is seeking damages on behalf of all Southwest investors from June 13, 2020, when the Baltimore Sun reported about problems with Southwest's computer system, to December 31, 2022. It is based on the root cause of the problem, which is alleged to be outdated and ineffective technology, in particular, its crew scheduling system (called ‘Sky Solver’) and an aggressive flight schedule that left it prone to greater cancellations than its competitors in the event of unusual conditions, such as nationwide storms. Call us if we can help.
Phil Griffis obtained his first jury verdict in 1990, when he convinced a jury that a customer’s fall at his client’s store did not cause the customer’s aspiration pneumonia and stroke. In the years since he has continued to win in courtrooms across the State of Texas.