Shareholders filed a lawsuit against Southwest Airlines Co on Thursday, accusing the carrier of fraudulently concealing problems that led last month to an operational meltdown and more than 15,000 flight cancellations.
on Thursday, accusing the carrier of fraudulently concealing problems that led last month to an operational meltdown and more than 15,000 flight cancellations.
The lawsuit said Southwest also did not discuss how its "point-to-point" route structure, which differs from the "hub-and-spoke" structure at other large U.S. airlines, could leave it vulnerable to unexpected bad weather. Teroganesian said that as the truth came out, Southwest's share price fell about 10% between Dec. 23, 2022, and Jan. 3, 2023, wiping out more than $2 billion of shareholder value.
Flight operations at Dallas-based Southwest buckled shortly before Christmas as a fierce winter storm swept across the United States.
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