Securities fraud lawsuit says cruise line lied about COVID-19's impact on business, causing stock to drop in price

Quick Take

  • Atachbarian v. Norwegian Cruise Lines is a new federal securities fraud lawsuit filed in Florida federal court on March 31, 2020.
  • Plaintiff seeks class action status and says that Norwegian and its corporate management misled investors about the impact of COVID-19 on its business, which led to the stock price being artificially high and then dropping when the reality of the situation became known.
  • This is the tip of a massive iceberg of COVID-19 litigation, which may end up resulting in dedicated court dockets and even a separate compensation or dispute resolution process – depending on the scope of future claims which are likely to be in the trillions of dollars.

new securities fraud lawsuit filed in Florida federal court alleges that Norwegian Cruise Lines artificially inflated stock prices by making false and misleading statements about its business prospects for 2020 and the impact of COVID-