Court: U.S. District Court
Location: Washington
Ticker Symbol: CCL
Consumers filed a proposed class-action lawsuit against Seattle-based cruise-ship operator Holland America Line, a wholly owned subsidiary of Carnival Corporation (NYSE:CCL).
The complaint stated that some passengers had been charged a so-called "Jones Act Penalty" for boarding the ship at a port other than the original departure point. The complaint alleges that the charge was characterized as government-imposed penalty, when in fact the cruise line kept the money.
The complaint also claimed that Holland America accepts secret kickbacks from shore-excursion providers and hid that fact from passengers, in violation of the law.
According to Alaska statute, cruise lines can collect a fee from providers of shore excursions such as fishing trips or sightseeing tours as long as the cruise lines disclose the financial arrangement. The suit alleged Holland America failed to make any disclosure to passengers.
The parties agreed to a settlement in 2007, which District Judge Robert S. Lasnik approved on December 13, 2007.
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