Allegiant Airlines’ poor corporate governance and safety record has cost investors millions, according to a new lawsuit filed in Las Vegas.
Allegiant Travel Co shareholder Charlotte Woolery filed the complaint, accusing it of operating an unsafe airline which has cost shareholders ‘hundreds of millions of dollars in damages to Allegiant’s reputation, goodwill, and standing in the business community.’
It names seven executives in the lawsuit, according to a Las Vegas Review-Journal report.
Allegiant and its shareholders are on the hook for ‘hundreds of millions of dollars in potential liability for violations of state and federal law,’ it claims.
Woolery’s lawsuit cites media reports and the damaging ’60 Minutes’ TV expose of the airline’s long list of safety issues.
The lawsuit names Allegiant CEO Maurice Gallagher and other executives who received $10 million in stock, options and bonuses in 2016.
The complaint is seeking an improvement in corporate governance ‘to comply with applicable laws and to protect Allegiant and its stockholders.’
It asked for new proposals to be put to a shareholder vote.
The low cost airline has taken steps to improve overall safety and performance by retiring the last of its aging MD-80 jets in November.
It now operates a younger, all-Airbus fleet.
