Charlotte Woolery, a shareholder of Allegiant Air (G4, Las Vegas Harry Reid), filed a lawsuit against the airline in the Clark County District Court, alleging that the airline damaged its shareholders' interest by its "lax safety standards", the Las Vegas Review-Journal has reported.
Woolery said that Allegiant's safety practices caused "hundreds of millions of dollars in damages to Allegiant’s reputation, goodwill, and standing in the business community" and potentially "have exposed Allegiant to hundreds of millions of dollars in potential liability for violations of state and federal law".
Besides the airline itself, the lawsuit also names seven executives, including CEO Maurice Gallagher and President John Redmond.
Woolery is asking the court to "take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable laws and to protect Allegiant and its stockholders from a repeat of the damaging events".
The LCC declined to comment on the lawsuit.
The carrier was a subject of two high-profile media reports earlier this year - in the Tampa Bay Times and then CBS' "60 Minutes" - which both alleged that Allegiant's safety standards were sub-par. The carrier denied all allegations, but the US Department of Transportation launched a review of the Federal Aviation Administration's (FAA) oversight over Allegiant in May following the reports.
