Carnival plc (CUK) Accused of Misleading Shareholders
According to the derivative complaint, in April 2017, Carnival plc (CUK) had to pay $40 million to resolve its subsidiary’s violations of U.S. environmental and maritime laws, which included illegally discharging oily bilge water at sea. Carnival also had to pay an additional $2 million to retain a corporate monitor to allow the federal court more surveillance of Carnival’s operations. Following this resolution, Carnival continued its unlawful misconduct by violating the terms of its probation and its mandated environmental compliance plan through the falsification of training records, rushed cleaning of the ship prior to federal officials’ visits, and the dumping of food water mixed with plastic into the sea. As a result, Carnival was required to pay another $20 million in resolution charges. Although Carnival has accrued $60 million in damages, Carnival’s directors have been able to collectively pocket $59.5 million in compensation while recklessly allowing these violations to occur. Carnival and its Board of Directors have still not taken legal action against the individuals responsible for this misconduct.