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Securities Law

Teamsters Fund to Lead Norwegian Cruise Line Covid-19 Suit

June 12, 2020, 7:54 PM

Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund was named lead plaintiff by the Southern District of Florida Friday in a securities class action against Norwegian Cruise Lines over its Covid-19 response.

The U.S. District Court for the Southern District of Florida also named the firm representing the Teamsters, Robbins Geller Rudman & Dowd LLP, as lead counsel.

The consolidated suits by Norwegian Cruise Lines investors accuse the company of lying about the coronavirus to boost sales.

Investors filed separate suits in March and April alleging the cruise company claimed to prioritize guest safety while simultaneously instructing sales people to downplay the chances that the coronavirus could survive in the heat of the Caribbean.

The plaintiffs allege the company’s stock fell 26.7% on March 11, 2020 after a news report that sales had fallen off due to the outbreak. The stock fell another 35.7% the next day, after a Washington Post story quoted a whistleblower saying “one of our own ratted,” the plaintiffs allege.

Judge Robert N. Scola Jr. issued the order.

Holland & Knight represents Norwegian Cruise Lines.

The case is Douglas v. Norwegian Cruise Lines, S.D. Fla., No. 20-cv-21107, 6/12/20.

To contact the reporter on this story: Peter Hayes in Washington at PHayes@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Meghashyam Mali at mmali@bloombergindustry.com

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