NEW YORK - (NewMediaWire) - July 22, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Carnival Corporation (“Carnival” or the “Company”) (NYSE:CCL) of the July 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Carnival stock or options between January 28, 2020 and May 1, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/CCL. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Southern District of Florida on behalf of all those who purchased Carnival securities between January 28, 2020 and May 1, 2020 (the “Class Period”). The case, Service Lamp Corporation Profit Sharing Plan v. Carnival Corporation et al, No. 1:20-cv-22202 was filed on May 27, 2020, and has been assigned to Judge K. Michael Moore.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements, and/or failing to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s medics were reporting increasing events of COVID-19 illness on the Company’s ships; (2) Carnival was violating port of call regulations by concealing the amount and severity of COVID-19 infections on board its ships; (3) in responding to the outbreak of COVID-19, Carnival failed to follow the Company’s own health and safety protocols developed in the wake of other communicable disease outbreaks; (4) by continuing to operate, Carnival ships were responsible for continuing to spread COVID-19 at various ports throughout the world; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Specifically, on April 16, 2020, when the Company still had at sea two (2) of its cruise ships, Bloomberg Businessweek published an article titled “Carnival Executives Knew They Had a Virus Problem, But Kept the Party Going.” In that article, it was revealed that Carnival may have failed to adequately protect passengers from COVID-19 on a series of cruise voyages, and indeed continued to operate new cruise departures despite its knowledge that the threat posed by COVID-19 had materialized on its ships and was likely to proliferate further.
On this news, Carnival’s stock fell from a closing price of $12.38 per share on April 15, 2020, to $11.85 per share on April 16, 2020—a $0.53 or 4.28% drop.
Then, on May 1, 2020, the Wall Street Journal published an article titled “Cruise Ships Set Sail Knowing the Deadly Risk to Passengers and Crew.” That article detailed how cruise ships, particularly Carnival ships, facilitated the spread of COVID-19, and provided new facts on early warning signs Carnival and its affiliated cruise lines possessed and the Company’s disclosure failures. Further, the article also noted that The House Committee on Transportation and Infrastructure had requested documents from Carnival related “to Covid-19 or other infectious disease outbreaks aboard cruise ships” and that testimony from a separate investigation in Australia revealed that Carnival and its affiliated cruise lines may have misled shore officials by concealing those exhibiting COVID-19 symptoms before docking.
On this news, Carnival’s stock fell from a closing price of $15.90 per share on April 30, 2020, to $13.93 per share on May 1, 2020—a $1.97 or 12.39% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Carnival’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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