On April 24, 2018, investors sued Allegiant Travel Company (“Allegiant” or the “Company”) in United States District Court, Central District of California. Plaintiffs in the federal securities class action allege that they acquired Allegiant stock at artificially inflated pries between June 8, 2015 and April 13, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. Here’s everything you need to know about the ALGT class action lawsuit:

Summary of the Allegations

Company Background

The Company (NASDAQ: ALGT) provides “travel services and products to residents of under-served cities in the United States.” Specifically, it provides “scheduled air transportation on limited frequency nonstop flights” between those cities and “leisure destinations.”

According to its website, Allegiant has been in business since 1997 and has a U.S. Department of Transportation (DOT) certification as a “Scheduled Air Carrier” with authority to fly scheduled and charter airline operations throughout the United States. The Company is also authorized for charter service to Canada and Mexico.

Allegiant also claims its employees “receive training that meets all FAA requirements for security, safety and operations.”

Summary of Facts

The Company and two of its senior officers and/or directors now stand accused of deceiving investors by lying and withholding critical information about Allegiant’s business and operational practices during the Class Period.

Specifically, they are accused of omitting truthful information about the maintenance of its aircraft and associated issues from SEC filings and related material. By deliberately or recklessly doing so, they allegedly caused Allegiant stock to trade at artificially inflated prices during the time in question.

The truth started to come out on April 13, 2018, when CBS News announced its plans to air a 60 Minutes segment “criticizing the company’s maintenance record” in two days. The April 15, 2018 program reported that the Company’s aircraft had “a high number of serious mechanical incidents from mid-2015 through October 2017,” that it “lacks the infrastructure and personnel to adequately maintain their aircraft,” and that “Allegiant has discouraged pilots from reporting safety and maintenance issues.”

A closer look…

As alleged in the April 24 complaint, the Company repeatedly made false or misleading public statements throughout the Class Period.

At the beginning of the Class Period, for example, Allegiant issued a statement in response to a media report about one of its aircraft making an emergency landing in Florida. The Company said in pertinent part: “At Allegiant, the safety of our passengers and crew is always our number one priority.”

On a form filed with the SEC on February 22, 2016, Allegiant included information about its aircraft maintenance protocols, saying in pertinent part: “Technicians employed by us have appropriate experience and hold required licenses issued by the FAA. We provide them with comprehensive training and maintain our aircraft in accordance with FAA regulations.”

Finally, on another form filed with the SEC on February 24, 2017, the Company stated in pertinent part: “Our management closely supervises all maintenance functions performed by our personnel and contractors employed by us, and by outside organizations.”

Impact of the Alleged Fraud on Allegiant’s Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is June 25, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Allegiant common stock using court approved loss calculation methods.

Recently Filed Cases

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.