Updated: April 29, 2019
Status: Ongoing Case
Labaton Sucharow LLP has been appointed lead counsel in a securities class action against Marriott International, Inc. (“Marriott” or the “Company”) and certain of its senior executives (collectively, “Defendants”). The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired Marriott common stock between November 9, 2016, through November 29, 2018, inclusive (the “Class Period”). Marriott is a multinational company that manages and franchises a broad portfolio of hotels and related lodging facilities around the world.
The action alleges that Defendants made a series of materially false and misleading statements about the security of customer data stored on its systems. On November 30, 2018, Marriott issued a press release disclosing that there had been unauthorized access to the Starwood guest reservation database that had potentially affected up to 500 million Marriott customers. Marriott acquired Starwood Hotels & Resorts Worldwide in September 2016 for more than $13 billion. The Company’s release further disclosed that an internal investigation revealed that there had been unauthorized access to the Starwood network since 2014. Upon news of the breach, Marriott’s stock fell over 5.5 percent.
The securities class action has been coordinated with a related consumer data breach litigation captioned In re Marriott International, Inc., Customer Data Security Breach Litigation, No. 19-md-2879 (D. Md.). Labaton Sucharow represents lead plaintiff Construction Laborers Pension Trust for Southern California. Defendants include Marriott, and its President and CEO Arne Sorenson, its Executive Vice President and CFO Kathleen Kelly Oberg, and its Chief Accounting Officer and Controller Bao Giang Val Bauduin.