8th Jun 2023 10:42
(Alliance News) - Ryanair Holdings PLC said on Thursday that the US class action lawsuit launched in November 2018 by the City of Birmingham pension fund in Alabama has been settled.
The Dublin-based budget airline has reached a USD5.0 million settlement of a lawsuit that accused them of defrauding shareholders by downplaying its willingness to recognise labour unions.
The case was launched by the City of Birmingham Firemen's and Policemen's Supplemental Pension System: an Alabama pension fund.
Shareholders accused Ryanair and Chief Executive Officer Michael O'Leary of inflating the company's stock price by attempting to mislead them into believing they would not welcome unions.
The lawsuit cited CEO O'Leary's claim that hell would "freeze over" before Ryan accepted unions.
Shareholders also mentioned the company's claim that it had enough pilots when it actually had a pilot shortage. The company offered to recognise pilot unions to avert a strike in December 2017.
After recent mediation between the parties, the lawsuit was settled.
This settlement followed the US District Court dismissal of several claims made by the plaintiff in 2020. This dismissal narrowed grounds for action.
Ryanair says that the finalised settlement agreement is subject to approval by the court.
The company states that there was no lawful basis for this claim, but that the settlement is in the interest of all shareholders due to the modest settlement amount.
Shares in Ryanair Holdings were up 1.0% at EUR16.92 in Dublin on Thursday.
By Will Neill, Alliance News reporter
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