Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against American Airlines Group Inc. (AAL)

/EIN News/ -- NEW YORK, July 19, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Texas on behalf of all persons and entities who purchased securities of American Airlines Group Inc. (“American Airlines” or the “Company”) (NASDAQ: AAL) between January 25, 2024 and May 28, 2024, inclusive (the “Class Period”).

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that American Airlines’ sales and distribution strategy was not driving the revenue projected and instead, was actually driving customers away from American Airlines as the strategy and its attested poor execution made it more difficult for customers to access American Airlines’ services.

The Complaint further alleges that on May 28, 2024, the Company reported the prompt termination of its Executive Vice President and Chief Commercial Officer, Vasu S. Raja, along with an abrupt reduction in its short-term guidance. During a conference presentation on May 29, 2024, the Company attributed its lowered guidance to a softness in consumer bookings, a domestic supply and demand imbalance, and a reduction in capacity growth, according to the complaint. The Complaint also alleges that Defendants announced that the reduced consumer bookings were significantly due to the changes the Company made to their sales and distribution strategy, that they did not execute their strategy properly, and that they will now be modifying their strategy in an attempt to recapture the customers their strategy drove away. As a result, Defendants reduced their second quarter fiscal year 2024 projections, notably cutting their projections for the Company’s operating margin by a full percentage point and adjusted earnings per share for the quarter by more than 17%. On this news, the price of the Company stock declined by more than 13% on May 29, 2024.

Investors who purchased or otherwise acquired shares of American Airlines should contact the Firm prior to the September 16, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.