Teroganesian v. Southwest Airlines Co., No. 23-cv-00115 (S.D.TX.)

Teroganesian v. Southwest Airlines Co., No. 23-cv-00115 (S.D.TX.)

Bernstein Liebhard is lead counsel representing the lead plaintiffs in a securities fraud class action entitled Teroganesian v. Southwest Airlines Co., No. 23-cv-00115 (S.D.TX.). Lead plaintiffs allege that the defendants issued materially false and misleading statements and omissions concerning the company’s technology systems and operations in violation of Section 10(b) of the Securities Exchange Act.  Specifically, lead plaintiffs allege that the defendants materially misled investors about the state of Southwest’s flight scheduling and crew scheduling technology systems by repeatedly representing that the company was investing in its technology and that the technology systems could adequately handle Southwest’s operations. The truth about Southwest’s technology slowly unraveled through a series of technology meltdowns, namely the December 2022 technology meltdown—the worst disruption in airline history— which resulted in the company cancelling over 16,700 flights, 60% of its flights during the busiest travel period of the year, wiping out billions of dollars in shareholder value. The action is pending.