Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/ryanair/) today announced that a class action has been commenced by an institutional investor on behalf of purchasers of Ryanair Holdings plc (NASDAQ: RYAAY) American Depositary Shares (ADSs) during the period between May 30, 2017 and September 28, 2018 (the Class Period). This action was filed in the Southern District of New York and is captioned City of Birmingham Firemens and Policemens Supplemental Pension System v. Ryanair Holdings plc., et al., No. 18-cv-10330.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Ryanair ADSs during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investors ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs counsel, Samuel H. Rudman or Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/ryanair/.
The complaint charges Ryanair and its Chief Executive Officer, Michael OLeary, with violations of the Securities Exchange Act of 1934. Ryanair is a Dublin-based airline operator.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Ryanairs business and operations as a result of its aggressive anti-employee practices and opposition to employee collectivization efforts. Specifically, the complaint alleges that defendants misrepresented and/or failed to disclose, among other things, that Ryanairs labor relations had deteriorated in 2017 and 2018. As a result, the Company was experiencing increased employee turnover and was threatened with massive strikes and other disruptions across its operations, and its historical operating model and profit growth were not sustainable.
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On September 14, 2017, it was reported that Ryanair had lost a key ruling in the European Court of Justice that cast doubt on the legality of the Companys use of Irish employment contracts to evade local labor laws throughout Europe. The next day, Ryanair announced that it would need to cancel up to 50 flights a day for the next six weeks due to pilot schedul[ing] issues. Reports began to circulate that the disruption was not due to scheduling issues, as the Company had claimed, but rather to widespread defections by disgruntled employees. Then, according to the complaint, in December 2017, Ryanair reversed its earlier position and conceded its need to recognize unions, but continued to downplay the extent of the labor unrest and conceal the expected impact to the Companys operations and financial results. However, in the summer of 2018, discontent among Ryanairs workers continued to spill out into the open, belying defendants public claims regarding improved labor relations and forcing workers into threatening collective action. The resulting flight cancellations damaged the Companys brand and forced it to pay millions in compensation costs or to re-route fliers.
On July 23, 2018, Ryanair disclosed a 20% decrease in quarterly profits, due in part to a 34% increase in staff costs. Then, on October 1, 2018, the Company revealed that it could not meet its annual profit guidance due to the lost fares and ballooning costs related to the strikes and flight cancellations. By market close on October 1, 2018, the price of Ryanair ADSs had fallen to $80.93 per ADS, 36% below the Class Period high of more than $126 per ADS.
Plaintiff seeks to recover damages on behalf of all purchasers of Ryanair ADSs during the Class Period (the Class). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the worlds leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900