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Southwest outage class action lawsuit overview:
- Who: Arthur Teroganesian filed a class action lawsuit against Southwest Airlines Co. and three of its top executives.
- Why: Teroganesian claims Southwest misled consumers about the risks associated with its allegedly outdated technology and unique “point-to-point” route structure prior to mass cancellations during the holiday travel season.
- Where: The class action lawsuit was filed in Texas federal court.
Southwest Airlines for years downplayed the risks associated with its outdated technology and unique “point-to-point” route structure prior to a recent system outage that caused mass cancellations during the holiday season, a new class action lawsuit alleges.
Plaintiff Arthur Teroganesian claims the airline spent years making misleading statements about its technology, while withholding that its point-to-point route structure could cause problems in the event of inclement weather.
“As flights were getting canceled around the country, it soon emerged that the root cause behind Southwest Airlines’ cancellations was outdated and ineffective technology, in particular, its crew scheduling system,” the Southwest class action states.
The plaintiff argues Southwest concealed the true weight of the risk from shareholders prior to the airline canceling thousands of flights and leaving travelers stranded last month amid severe winter weather.
Southwest stock price plummets following mass flight cancellations, class action says
Southwest’s stock price would ultimately plummet 12% over the course of a few days, before dipping again after a New York Times opinion piece detailed the airlines’ alleged responsibility for what happened, according to the class action.
“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common shares, Plaintiff and other Class members have suffered significant losses and damages,” the Southwest class action states.
The plaintiff wants to represent a nationwide class of investors who acquired Southwest Airlines securities traded on the New York Stock Exchange during the class period and ended up suffering damages.
Southwest is accused of violating the Securities Exchange Act of 1934. He is demanding a jury trial and requesting declaratory relief along with an award of damages for himself and all class members.
A related class action lawsuit was filed against Southwest earlier this month by a consumer arguing the airline violated federal law by allegedly not providing prompt refunds to travelers affected by the mass flight cancellations.
Do you own Southwest stock shares? Let us know in the comments.
The plaintiff is represented by Stuart L. Cochran of Cochran Law PLLC and Laurence Rosen and Phillip Kim of The Rosen Law Firm PA.
The Southwest outage class action lawsuit is Teroganesian, et al. v. Southwest Airlines Co., et al., Case No. 4:23-cv-00115, in the U.S. District Court for the Southern District of Texas.
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12 thoughts onSouthwest class action alleges airline knew systems needed upgrading prior to outage
southwest Late Dec I spent 8=`12 hours on the phone.. I was eventually refunded for my flight but I got a room by the airport and not reimbursed for that and likewise a hotel in Dallas. I only received about 20,000 SW points as reimbursement but that hardly seems worthy compensation. robert Tice san diego to Dallas TX dec 23 then 24 then 25 spent 34 hours on the phone with 6 flight changes then told I must fly so bought a run by airport then cancelled
How do I join this class action lawsuit? Southwest cancelled my Dec. 27, 2022 flight and left me stranded with zero compensation and is refusing to reimburse me for all my expenses.