Spirit Airlines Seeks to Halt Securities Suit Against Executives

Spirit Aviation Holdings Inc. asked a federal court to pause a proposed investor class action targeting its top executives, arguing it’s distracting its leaders from the airline’s second bankruptcy.

Defending CEO David Davis and chief financial officer Frederick Cromer against the putative class suit also hurts the airline’s economic interests because the litigation triggers indemnity obligations that drain estate assets, Spirit said in a complaint filed Monday in the US Bankruptcy for the Southern District of New York.

The executives’ “around-the-clock efforts,” including negotiating bankruptcy agreements, are needed for the Chapter 11 case, Spirit said.

“Litigating the Securities Action will ...