Pomerantz LLP announces that a class action lawsuit has been filed against Norwegian Cruise Line Holdings Ltd. (“Norwegian” or the “Company”) (NYSE: NCLH) and certain of its officers. The class action, filed in United States District Court for the Southern District of Florida, and indexed under 20-cv-21685, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise, acquired the publicly traded securities of Norwegian from February 20, 2020, through March 12, 2020, both dates inclusive (the “Class Period”). Plaintiffs seek to recover compensable damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
Norwegian is a global cruise company that operates the Norwegian Cruise Line, Oceania Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was employing sales tactics of providing customers with unproven and/or blatantly false statements about COVID-19 to entice customers to purchase cruises, thus endangering the lives of both their customers and crew members; and (ii) as a result, Defendants’ statements regarding the Company’s business and operations were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On March 11, 2020, Miami New Times reported in the article “Leaked Emails: Norwegian Pressures Sales Team to Mislead Potential Customers About Coronavirus” that leaked emails from a Norwegian employee showed that the Company directed its sales staff to lie to customers regarding COVID-19.
On this news, the Company’s shares fell $5.47 per share or approximately 26.7% to close at $15.03 per share on March 11, 2020, damaging investors.
On March 12, 2020, the Washington Post published the article, “Norwegian Cruise Line managers urged salespeople to spread falsehoods about coronavirus.” The article revealed even more about Norwegian’s sales tactics from leaked internal memoranda including dangerous statements.
On this news, the Company’s shares fell a further $5.38 or approximately 35.8% to close at $9.65 on March 12, 2020, further damaging investors.