American Airlines Defeats Investor Suit Over Sales Strategy Flop

American Airlines Group Inc. investors can’t proceed with a proposed securities fraud class action alleging the airline misled them about an unsuccessful push toward website-based corporate bookings, a federal court ruled.

The investors failed to show material misrepresentations, according to Chief Judge Reed O’Connor of the US District Court for the Northern District of Texas. They also failed to create an inference of fraudulent intent, he said.

• The investors sued over a 14% stock drop that followed American’s alleged acknowledgement in May 2024 that reduced bookings were due to the change from widely used platforms to its own direct channels ...