LONDON – Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Southwest Airlines Co. on behalf of Southwest stockholders.
The firm’s investigation concerns whether Southwest has violated the federal securities laws and/or engaged in other unlawful business practices.
In a press release on Tuesday January 3, Bragar Eagel & Squire referred to an article which discussed the US Department of Transportation’s proposed investigation into the large number of flight cancellations by the airline over the Christmas weekend, saying:
“On December 26, 2022, Business Insider published an article entitled “US Department of Transportation says it plans to look into Southwest Airlines following the airline’s ‘unacceptable’ holiday flight cancellations.”
“The article stated, among other things, that the “U.S. DOT tweeted Monday it will examine whether Southwest is abiding by its customer service policy,” and “Southwest cancelled nearly 3,000 flights on the day after Christmas, the most of any U.S. airline.”
Following the news of the proposed investigation, Southwest Airline’s stock subsequently fell by $2.15 per share, or 5%, to close at $33.94 per share on December 27, 2022.
The US DOT action
A US Department of Transportation (DOT) statement on Monday 26 December characterized the situation, which saw a significant number of Southwest Airline flights cancelled over the Christmas period, as “disproportionate and unacceptable”.
NBC News reported that the figures for flight cancellations on Boxing Day alone included around 300 for Delta Air Lines, 130 for United Airlines and at least 2,893 for Southwest Airlines.
The DOT expressed its concerns with the Southwest Airlines situation, stating: “USDOT is concerned by Southwest’s unacceptable rate of cancellations and delays & reports of lack of prompt customer service.”
“The Department will examine whether cancellations were controllable and if Southwest is complying with its customer service plan.”
About Bragar Eagel & Squire, P.C.
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country.
The legal firm provided the following advice to affected Southwest Airlines shareholders:
“If you purchased or otherwise acquired Southwest shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters;”