Pension fund files class action suit against Mexico's Volaris
MEXICO CITY Feb 25 (Reuters) - A U.S. pension fund has sued Volaris to recover losses that it said were caused by false statements in the Mexican airline's initial public offering filings.
The lawsuit, which seeks class-action status, was filed on Tuesday in the U.S. District Court for the Southern District of New York on behalf of the DeKalb County Employees Retirement System. It said Volaris omitted or misstated information in U.S. filings ahead of its September 2013 listing of American depositary receipts.
The complaint accuses Volaris and some executives and directors with failing to disclose financial effects resulting from a change in the company's reservation system as well as increased competition in certain markets.
The lawsuit also says Volaris' registration statement "negligently contained financial statements that were presented in violation of applicable accounting standards and the company's publicly disclosed accounting policies."
A Volaris spokesman was not immediately available for comment.
At Tuesday's close, Volaris ADRs had fallen 32.8 percent since the IPO. They were down 1 percent at $9.32 in morning New York Stock Exchange trading.
The Mexican shares, which had been down 22 percent since listing, fell 1.2 percent to 13.80 pesos. (Reporting by Elinor Comlay; Editing by Lisa Von Ahn)
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