Carnival Faces Securities Fraud Class Over Covid-19 Handling

Carnival Corp. was hit with a securities fraud class action Wednesday alleging the company made false and misleading statements and concealed information about its adherence to its health and safety protocols in the wake of the Covid-19 pandemic.

The proposed class action, filed by Service Lamp Corp. Profit Sharing Plan, also asserts the company misrepresented its role in the transmission of the virus and violations of port-of-call regulations.

As a result of these false and misleading statements and omissions, the plaintiffs allege, Carnival common stock and securities traded at inflated prices.

The company’s stock tumbled when news of the scale ...