Ryanair investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Ryanair is a Dublin-based airline operator. It has used a low-fare business model to grow into the largest airline in Europe.
The Class Period commences on May 30, 2017, when Ryanair filed a release with the SEC on a Form 6-K announcing its financial results for its fiscal year ended March 31, 2017. The release highlighted Ryanair’s treatment of its workers and employees as a reason for the company’s success. In particular, the release stated that Ryanair had completed “industry leading” contracts with its pilot and cabin crew bases in Europe and that the European Court of Justice (“ECJ”) had recently issued a ruling that validated Ryanair’s treatment of its workers. However, on September 14, 2017 it was reported that Ryanair had lost a key ruling in the ECJ that cast doubt on the legality of Ryanair’s use of Irish employment contracts to evade local labor laws throughout Europe. The next day, Ryanair announced that it would need to cancel up to 50 flights a day for the next six weeks due to pilot scheduling issues, impacting some 315,000 customers.
According to the complaint, in the summer of 2018, discontent among Ryanair’s workers spilled out into the open, belying the defendants’ public claims regarding improved labor relations. On July 23, 2018, Ryanair reported its financial results for the quarter ended June 30, 2018 in a release filed with the SEC on a Form 6-K. In the release, Ryanair disclosed a 20% decrease in quarterly profits, due in large part to a 34% increase in staff costs. Ryanair also disclosed that strikes had damaged its operations and financial results. Throughout the summer of 2018, Ryanair’s labor relations problems spread and escalated.
The complaint alleges that, on October 1, 2018, Ryanair revealed that it could not meet its annual profit guidance due to decreased fares and ballooning costs related to the strikes and flight disruptions. Following this news, the price of Ryanair ADSs declined from $96.04 per ADS to $80.93 per ADS between September 28, 2018 and October 1, 2018, a decline of more than $15, or 16%, over a single trading day.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (a) the state of Ryanair’s labor relations was far worse than had been publicly represented by the defendants; (b) Ryanair was not negotiating with its employees fairly or in good faith, but instead had presented take-it-or-leave-it proposals, and doubled down on hardball negotiating tactics in order to pressure employees to capitulate; (c) Ryanair had been unable to hire and retain sufficient pilots to meet expected demand in the face of expected strikes, and was thereby exposed to increased risk of flight cancellations, loss of reputational assets, and increased costs from flight disruptions; (d) Ryanair needed to significantly increase pay and benefits in the short term to be able to hire and retain sufficient qualified employees to meet operational targets and prevent widespread strikes; (e) as a result of the above, Ryanair’s historical operating model and profit growth were not sustainable; and (f) as a result of the above, Ryanair was not on track to meet its 2019 profit estimate, such profit estimate lacked a reasonable basis, and the defendants did not reasonably believe that the estimate would be achieved.
If you are a member of the class described above, you may no later than January 7, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
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. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of the class member's choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
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