The complaint, which also targets the firm’s director, Michael O’Leary, accuses Ryanair of having artificially raised the price of his action
The low cost airline Ryanair and its general manager Michael O’Leary are the subject of a complaint filed in New York by a shareholder of the group. The latter believes that Ryanair has artificially increased the course of its action by exaggerating its ability to manage labor relations and reduce costs.
This complaint against the first airline in terms of passengers was filed Tuesday, November 6 by an Alabama pension fund, the latter seeking a status class action and compensation for investors who bought Ryanair securities across the Atlantic – American depositary shares (ADS) – between May 30, 2017 and September 28, 2018.
Between these two dates, the ADS Ryanair lost nearly 11%. And, between the close of September 28 and the price of Wednesday, November 7 at the end of the session on Wall Street, the title has again yielded 7.5%. Ryanair is struggling to extinguish the demands of its staff since it resolved last December to recognize unions for the first time.
Last month, the company lowered its annual profit forecast by 12% and warned that the situation could get worse if strikes continued to disrupt its business and bookings.
According to the pension fund’s complaint, Ryanair misled investors in its earnings releases and conference calls, citing the stability of its social relations. “Without the investors being informed, the progression of the company’s profits from the outset was built on a base, undisclosed and unsustainable, of exploitation of workers and staff turnover,” reads in the complaint.
“The decline in the price of ADS Ryanair is a direct result of the revelation to investors and the market of the nature and extent of the fraud of the accused. Since an action is expected to drop in the eyes of investors, it is common in the United States to see the latter sue the issuer of the securities they hold. / Reuters