| Company: | Royal Caribbean Cruises Ltd |
| Ticker Symbol: | RCL |
| Class Period: | Apr-23-09 to Jul-28-11 |
| Date Filed: | Sep-8-11 |
| Lead Plaintiff Deadline: | Nov-7-11 |
| Court: | Southern District of Florida |
| Allegations: | |
The Complaint charges Royal Caribbean and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Royal Caribbean is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France, and TUI Cruises through a 50% joint venture.
More specifically, the Complaint alleges that the defendants failed to disclose and misrepresented the following material adverse facts which were known to them or recklessly disregarded by them: (1) that defendants had improperly accounted for interest expense related to the amortization of certain financing fees; (2) that as a result, defendants had materially overstated Royal Caribbean's profitability; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times; and (6) that the defendants' statements that the Company was operating according to plan, along with their statements regarding the Company's earnings guidance and prospects, were lacking in any reasonable basis when made. On July 27, 2011, after the market closed, Royal Caribbean shocked investors when it disclosed that it had identified errors in its previous accounting treatment of interest expense relating to the amortization of certain financing fees. As a result, the Company had "revised" its previous financial statements, resulting in (among other things) reduced net income for fiscal years 2009 and 2010. This accounting error also reduced the Company's 2011 earnings guidance by $0.10 per share. The next day, financial analysts and reporters pointed out that the defendants had attempted to slide under the radar an additional $0.10 reduction in 2011 full-year earnings, completely unrelated to the accounting issue. Upon the release of this news, shares of the Company's stock fell $4.50 per share, or over 12.5 percent, to close on July 28, 2011 at $31.26 per share, on unusually heavy trading volume. In the days that followed, the Company's shares continued to decline, and closed as low as $24.00 per share on August 8, 2011.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
