Spirit Airlines came out of bankruptcy this year. They said they had a plan to return to profitability. Instead, they wound up back in bankruptcy. Investors were tricked! So lawyers are seeking a class action for securities fraud.
- If you did a bad thing, and the stock fell, that’s securities fraud
- as long as lawyers can find some indication that you led investors to believe you wouldn’t do the bad thing.
Spirit Airlines did a bad thing by saying they were going to improve their financial performance, and not warning investors they’d be headed back into bankruptcy – until they disclosed they might be heading back into bankruptcy.
Defendants touted their purported plan to enhance Spirit’s liquidity, financial condition, and business operations, as well as the purported positive impacts these measures were having the Company’s business and financial results. In so doing, Defendants indicated to investors and the market that Spirit’s business had emerged from bankruptcy protection on improved financial footing with the requisite corporate strategy and means to operate as a publicly traded company.
Maybe you said you’re an ethical company, and the CEO had to resign over an affair. If the stock dropped, that’s securities fraud.
Maybe Boeing said they were fixing their production processes and then a door plug blew out of a 737. As national treasure Matt Levine says, everything is securities fraud. And so everything in aviation is securities fraud.
- American Airlines firing Vasu Raja was securities fraud
- The Southwest Airlines Christmas meltdown of 2022 was securities fraud
- The Boeing 737 MAX door plug blowout on Alaska Airlines was securities fraud
In each of these cases, it’s investors who were the real victims. I feel like someone needs to figure out a compelling legal theory of how Spirit Airlines passenger and employee brawls are securities fraud. Did Spirit ever say the beatings wouldn’t continue if morale improved?
A WILD brawl broke out at a #SpiritAirlines check-in counter in Baltimore… and it was all caught on video! pic.twitter.com/vrrOlfEWdF
— TMZ (@TMZ) May 31, 2024
A WILD brawl broke out at a #SpiritAirlines check-in counter in Baltimore… and it was all caught on video! pic.twitter.com/vrrOlfEWdF
— TMZ (@TMZ) May 31, 2024
Attorneys say they’re still looking for a lead plaintiff and the deadline is December 1.
This “securities fraud” thing is standard ambulance chasing layer practice. It doesn’t mean jack.
As I have posted numerous times I’m not a fan of the US civil litigation system and the ambulance chasers it supports. However there is a special place in hell for the securities lawsuit attorneys. If a stock goes up “no problem” but anytime it goes down or enters bankruptcy they look for any reason to sue. BTW almost always that means shareholders get little if anything, the company makes some change to operations/reporting and the ambulance chaser gets a “go away” fee. So sad
Jeez who wrote this article? AI?
The only people that make out in Chapter 11 are the attorneys.
Spirit could solve all there problems and just shut down and close there doors,thats whats going to happen eventually, they just need to be done with it
@George Romey — Not really, but ok. Maybe you meant Chapter 7 (liquidation, nearly everyone screwed), because Chapter 11 (reorganization, less screwed) actually can ‘work.’
Just liquidate the thing..
Why that merger with Jetblue was blocked I will never understand. Jetblue needed the planes and the pilots to expand and challenge the big 4. Instead Spirit goes bankrupt twice, and the consumer gets even less options. Just awful decision to block that merger.
BWI can get wild – used to have that as my home airport for long haul. As for the fraud, color me not surprised.