Since the pandemic hit in Q1 2020, a related increase in stock market volatility has prompted many shareholders to seek relief from their dwindling returns in the form of securities class action lawsuits. From cruise lines to capital holdings, investors are alleging that proper disclosures were not made quickly enough – or at all –  by public companies in response to the coronavirus crisis.

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On May 27, 2020, a similar class action lawsuit was filed against Carnival alleging the company misled investors about its health and safety protocols relating to COVID-19, as well as its role in facilitating the transmission of the virus.

While Carnival was one of the first companies in the leisure, travel and hospitality industries to face securities class actions, many other firms in this industry — particularly those that experienced severe price drops — are likely to face similar lawsuits with claims of inadequate, or absence of timely, disclosures.

In Law360, economic experts Atanu Saha, Ph.D. and Yong Xu, Ph.D. share valuable insights into how companies can best defend their actions with a data-driven approach. Using a real-world event study and qualitative analysis of the Carnival matter as the example, Drs. Saha and Xu provide a trial-ready, objective approach for examining the veracity of plaintiff allegations in these matters.

Read the full article.

About the Authors

Atanu Saha-HS

Atanu Saha

Atanu Saha, a Partner with StoneTurn, has over 25 years of experience in the application of economics and finance to complex business issues. He has served as an expert witness […]

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Yong Xu

Dr. Yong Xu, a Managing Director with StoneTurn, brings over 20 years of experience in the application of economics, finance, and statistics to complex business issues. He has provided expert […]

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