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Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Carnival Secures Dismissal With Prejudice of COVID-19-Related Securities Class Action
- Client News
- March 30, 2022
Paul, Weiss achieved a significant victory for Carnival Corp. & plc, the world’s largest cruise operator, and Carnival’s CEO, Arnold Donald, obtaining the dismissal with prejudice of all claims in a COVID-19-related securities class action filed in the U.S. District Court for the Southern District of Florida.
Last year, Chief U.S. District Judge Kevin Michael Moore dismissed a prior version of the complaint but granted the plaintiff class leave to replead. In their second amended complaint, which was the subject of yesterday’s ruling, the plaintiffs alleged that the defendants had failed to disclose the business risks posed to Carnival by COVID-19, that the company had falsely reassured the market that it was in compliance with all applicable regulations promulgated by the CDC, and that it had falsely represented that it had implemented appropriate health and safety protocols on its vessels. In a comprehensive 49-page opinion, Judge Moore held that the plaintiffs had failed to identify any violations of the then-existing regulatory guidance, and that Carnival had clearly and consistently disclosed the potential impact of the pandemic on its operations and financials. The court also found that the plaintiffs failed to plead a strong inference of scienter, specifically finding that Carnival’s action to pause operations, its buyback of more than three million of its shares during the class period, and the affirmative measures it had taken to protect the health and safety of passengers and crews were all inconsistent with fraudulent intent.