RADNOR, Pa., Sept. 8, 2011 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Florida on behalf of purchasers of the securities of Royal Caribbean Cruises Ltd. (NYSE: RCL) ("Royal Caribbean" or the "Company"), who purchased or otherwise acquired Royal Caribbean securities between April 23, 2009 and July 28, 2011, inclusive (the "Class Period"). If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases/royalcaribbean/.
Members of the class may, not later than October 3, 2011, move the Court to serve as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com. For additional information about this lawsuit, or to join the class action online, please visit http://www.ktmc.com/cases/royalcaribbean/.
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.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
David M. Promisloff, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org
SOURCE Kessler Topaz Meltzer & Check, LLP