Southwest Airlines Co. (NYSE: LUV) Securities Fraud Class Action

Southwest Airlines Corporation investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than March 13, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired Southwest Airlines Co. (“Southwest Airlines”) (NYSE:  LUV) securities between June 13, 2020 and December 31, 2022, both dates inclusive (the “Class Period”).

Case Background:
On December 22, 2022, Southwest began to cancel flights in the aftermath of a winter storm. In the following days, the airline cancelled 15,004 flights, more than half of its typical flight schedule, and by December 28, about 87% of all cancelled flights in the U.S. were from Southwest alone. The Transport Workers Union president stated that she and other labor leaders had repeatedly told management that Southwest’s scheduling technology is not good enough, with a “complicated” model for assigning flights and an “antiquated internal system” used for managing and staffing trips.

On December 26, 2022, Business Insider published an article entitled "US Department of Transportation says it plans to look into Southwest Airlines following the airline's 'unacceptable' holiday flight cancellations." The article stated, among other things, that the "U.S. DOT tweeted Monday it will examine whether Southwest is abiding by its customer service policy [,]" and "Southwest cancelled nearly 3,000 flights on the day after Christmas, the most of any U.S. airline." Following this news, Southwest’s stock price fell $2.15, or 10.8%, to close at $32.19 per share on December 28, 2022.

Then on December 31, 2022, The New York Times published an article discussing the “open secret” within Southwest. The article indicated, among other things, that Southwest needed to modernize its scheduling systems and that software shortcomings had “contributed to previous, smaller-scale meltdowns.” Following this news, Southwest’s stock price fell $1.70, or 3.2%, to close at $32.60 per share on January 3, 2023.

The complaint against Southwest alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Southwest continuously downplayed or ignored the serious issues with the technology it used to schedule flights and crews, and how it stood to be affected worse than other airlines in the event of inclement weather; (2) it did not discuss how its unique point-to point service and aggressive flight schedule could leave it prone in the event of inclement weather; and (3) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@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.