Spirit Investor Sues CEO, CFO Over August Bankruptcy Filing

Spirit Aviation Holdings Inc. executives overhyped the bargain airline company’s financial rebound before filing again for bankruptcy protection in August, according to an investor lawsuit filed Tuesday.

An investor and his company sued CEO Dave Davis and chief financial officer Fred Cromer of Spirit—parent company of Spirit Airlines LLC—for allegedly misleading shareholders about its financial turnaround. In reality, the company was on the brink of filing for bankruptcy protection for the second time in under a year, said the proposed class complaint filed in the US District Court for the Southern District of Florida.

The complaint alleged a financial filing ...