Summary
This 8-K filing from Royal Caribbean Cruises Ltd. (RCL) reports on a significant legal development concerning its subsidiary, Celebrity Cruises Inc. On June 29, 2007, a federal court jury awarded Celebrity Cruises approximately $15 million after a retrial of a portion of its lawsuit against Essef Corp. This lawsuit stems from a 1994 outbreak of Legionnaires’ disease on a Celebrity ship. The retrial was specifically to re-evaluate the lost profits awarded to Celebrity. While a prior jury award for loss of enterprise value was rejected, this most recent verdict, when combined with previously awarded amounts not subject to retrial, brings the total award to approximately $25 million. This figure excludes pre-judgment interest and attorneys' fees. Investors should note that this verdict is subject to appeal, and the ultimate financial impact remains undetermined.
Key Highlights
- 1Celebrity Cruises Inc., a subsidiary of RCL, was awarded approximately $15 million in damages following a retrial.
- 2The lawsuit against Essef Corp. relates to a 1994 Legionnaires’ disease outbreak on a Celebrity ship.
- 3The retrial focused on re-determining the amount of lost profits awarded to Celebrity.
- 4A prior award for loss of enterprise value was rejected by the court.
- 5The total award to Celebrity, including prior amounts not subject to retrial, is approximately $25 million, excluding interest and legal fees.
- 6The jury's verdict is subject to appeal, and the final financial outcome is currently undetermined.