Shareholders Sue Southwest Over Holiday Meltdown

January 13, 2023 Business, Travel

Shareholders filed a lawsuit against Southwest Airlines Co on Thursday, accusing the carrier of fraudulently concealing problems that led last month to an operational meltdown and more than 15,000 flight cancellations.

According to the proposed class action filed in federal court in Houston, Southwest publicly downplayed or failed to disclose serious shortcomings in its flight scheduling software technology.

The lawsuit said Southwest also did not discuss how its “point-to-point” route structure, which differs from the “hub-and-spoke” structure at other large U.S. airlines, could leave it vulnerable to unexpected bad weather.

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Shareholders sue Southwest Airlines over flight meltdown https://t.co/4xjil8Eliy pic.twitter.com/IKKcA6oUBN

— Reuters (@Reuters) January 13, 2023