Ryanair must face US shareholder lawsuit over unionization comments

Ryanair and CE Michael O'Leary failed to persuade a US judge to dismiss a securities fraud lawsuit accusing Europe's largest budget airline of defrauding them by downplaying its willingness to recognise labour unions. While dismissing much of the proposed class action, US District Judge Paul Oetken said shareholders could try to prove that Ryanair intended to mislead them with statements indicating a "near certainty" it would not welcome unions, the recognition of which could increase costs and reduce profitability. The Manhattan judge said this included O'Leary's statement at Ryanair's September 2017 annual general meeting that hell would "freeze over" before the Dublin-based carrier accepted unions. Such statements "are impossible to reconcile with O'Leary's subsequent admission that he had 'long anticipated' unionization," and were "direct evidence" of possible intent to mislead shareholders, Oetken wrote. Ryanair offered that December to recognise pilot unions, to avert a possible strike, and its American depositary shares fell 5.2% that day. Oetken also dismissed claims concerning other statements about Ryanair's labor relations, profitability and growth targets, finding no proof the statements were false.<br/>