Robbins LLP: Volaris Aviation Holding Company (VLRS) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Controladora Vuela Compañía de Aviacion, S.A.B. de C.V., d.b.a. Volaris Aviation Holding Company (NYSE: VLRS) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with the company’s initial public offering (“IPO”) on September 18, 2013. Volaris provides air transportation services for passengers, cargo, and mail in Mexico and internationally.
Volaris Misrepresents Its Business Practices
Since its September 18, 2013 IPO, American Depository Shares (“ADSs”) of Volaris have dropped 23%, from $12.00 to $9.19, as of February 23, 2015. According to the complaint, on June 6, 2013, Volaris filed a registration statement with the U.S. Securities Exchange Commission that contained untrue statements and failed to disclose material information. Specifically, the registration statement contained financial statements that were in violation of applicable accounting standards and Volaris’s publicly disclosed accounting practices. Additionally, Volaris failed to disclose the financial effects of switching to its new airline reservation system, and the expansion of competition in the Tijuana and Guadalajara markets.
Volaris Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.