Carnival COVID-19 Securities Action Dismissed With Leave to Amend

MIAMI — A Florida federal judge has dismissed a securities action in which Carnival Corp. was accused of misrepresenting the preventive measures it took during the early days of the COVID-19 pandemic, finding the plaintiffs failed to allege that the cruise line acted with “an intent to deceive, manipulate, or defraud its investors or with severe recklessness.”

In a May 28 order, Judge K. Michael Moore of the U.S. District Court for the Southern District of Florida added it is plausible that Carnival prioritized health and safety aboard its ships, and that the company believed the risk to its business …