| COMPANY |
American Airlines Group Inc. |
| COURT |
United States District Court for the Northern District of Texas |
| CASE NUMBER |
24-cv-00673 |
| JUDGE |
The Hon. Terry R. Means |
| CLASS PERIOD |
July 20, 2023 through May 28, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS SEPTEMBER 16, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on July 20, 2023, when, before the opening of trading, American Airlines issued a press release announcing its second quarter 2023 financial results for the interim period ended June 30, 2023. In addition to reporting that American Airlines had achieved record quarterly revenue of $14.1 billion, a 4.7% increase year over year, American Airlines announced that it was raising full-year adjusted EPS guidance to between $3.00 and $3.75 per diluted share. American Airlines attributed the strong results to Defendants’ business acumen and emphasized the company’s return to profitability post pandemic. American Airlines further emphasized that “Our operation is performing at historically strong levels, and we have worked to refresh our fleet and build a comprehensive global network, all of which helped to produce record revenues in the second quarter,” adding that the company “will build on this momentum the rest of the year and continue to prioritize reliability, profitability, accountability and strengthening our balance sheet.”
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the new distribution capability sales strategies that American Airlines adopted were not sustainable because they alienated travel agencies and the corporate customers who were among the airlines’ highest spending customers, drove away lucrative corporate customers, and ultimately diminished American Airlines’ s revenues; and (2) as a result, American Airlines’s business metrics and financial prospects were not as strong as indicated in the company’s statements made during the Class Period.
On May 28, 2024, after the market closed, American Airlines announced that its CCO was departing, and disclosed that the company was lowering its guidance. In an industry conference the following day, May 29, 2024, American Airlines’s CEO stated that the company’s “expectation for domestic performance has worsened materially since [it] provided guidance in April,” and that the revision “is largely due to a softer domestic environment than [the company was] expecting and [its] performance within that environment.”
On this news, American Airlines’s stock price fell $1.82, or 13.5%, to close at $11.62 per share on May 29, 2024.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.