American Airlines Group Inc.

On May 28, 2024, after the market closed, American Airlines announced that its Chief Commercial Officer was departing. Additionally, the Company disclosed that it was lowering its guidance. In an industry conference the following day, May 29, 2024, the Company’s CEO stated that the Company’s “expectation for domestic performance has worsened materially since [it] provided guidance in April,” and that the revision “is largely due to a softer domestic environment than [the Company was] expecting and [its] performance within that environment.”

On this news, American Airlines’ stock price fell $1.82, or 13.5%, to close at $11.62 per share on May 29, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s reports of growth relied far too heavily on inflated demand assumptions allegedly stemming from the implemented changes to their sale and distribution strategy which had downsized the Company’s sales and distribution channels to redirect consumers solely to their online platform; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.