Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Aug. 29, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises American Airlines Group Inc. ("American Airlines" or the "Company") (NASDAQ: AAL) investors of a class action representing investors that bought securities between July 20, 2023 and May 28, 2024, inclusive (the "Class Period"). American Airlines investors have until September 16, 2024 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
CASE ALLEGATIONS: American Airlines operates as a major airline network, offering scheduled flights for passengers and cargo through its hub airports.
The class action lawsuit against American Airlines claims that during the Class Period, the defendants made misleading statements and failed to disclose critical information. Specifically, the lawsuit alleges that: (i) the new sales strategies implemented by American Airlines were unsustainable because they alienated travel agencies and high-spending corporate customers, leading to a loss of these valuable clients and ultimately reducing the airline’s revenue; and (ii) as a result, the company’s business performance and financial outlook were not as strong as suggested in its statements during the Class Period.
On May 28, 2024, American Airlines announced the departure of its Senior Vice President and Chief Commercial Officer, Vasu S. Raja, who had been leading the airline’s efforts to overhaul its sales strategies to boost profitability amid the significant debt incurred during the Covid-19 pandemic. The company also reported its first quarter 2024 financial results, revealing a substantial loss despite record-breaking revenue. Furthermore, American Airlines downgraded its financial guidance for the second quarter of 2024, now expecting adjusted earnings of $1.00 to $1.15 per share, down from the previous range of $1.15 to $1.45 per share. The company also indicated that its second quarter 2024 operating margin would be about 1 percentage point lower than initially projected, with revenue per available seat mile falling short of earlier expectations. Following this announcement, American Airlines' stock price dropped over 13%, negatively impacting investors.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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