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AAL.US
id: 1292

American Airlines (AAL) Sales Issues Case

N.D. Texas
Court
4:24-cv-00673
Case number
01/25/2024
Class period Start
05/28/2024
Class period End
09/16/2024
Lead Plaintiff motion deadline
  • $AAL stockholder filed a claim against American Airlines for hiding that its growth reports were inflated due to cutting back on traditional sales channels.
  • After disappointing financial results on May 29, 2024, $AAL fell by 13%.
  • American Airlines investors can join this case to be notified about potential recovery.
Case Details:

On May 28, 2024, American Airlines announced the immediate termination of its EVP and Chief Commercial Officer, and lowered its short-term guidance.

The next day, the company attributed the lowered guidance to reduced consumer bookings, a supply-demand imbalance, and decreased capacity growth.

American Airlines admitted their sales strategy drove away customers and plans to modify it to win them back.

Consequently, they lowered their Q2 2024 projections, reducing operating margin estimates by 1% and adjusted earnings per share by over 17%.

On this news, $AAL fell by 13.5% on May 29, 2024.

Based on these events, a $AAL stockholder filed a claim against American Airlines and its leaders, accusing them of the following:
  • The company's growth reports were based on inflated demand assumptions from changes in their sales strategy.
  • These changes reduced traditional sales channels, focusing solely on their online platform.
Considering all the representations, investors suspect American Airlines hid that growth reports were inflated due to cutting back on traditional sales channels.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/29/2024
Filing date
07/18/2024
Lead Plaintiff Deadline
09/16/2024
Judge
Terry R Means
Collecting participants…

American Airlines Group

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Ch...

    Ticker
    AAL.US
    ISIN
    US02376R1023
    CIK
    6201
    Sector
    Industrials
    Industry
    Airlines
    Country
    USA
    Address
    1 Skyview Drive, Fort Worth, TX, United States, 76155