Posted on: Tuesday, April 17, 2001

Cruise line hopes to settle lawsuit with vouchers

Bloomberg News

MIAMI — Cruise operator Carnival Corp. plans to issue vouchers worth about $125 million in discounts on cruise vacations to settle lawsuits claiming that it overcharged passengers.

Carnival Cruise Line plans to issue vouchers valued at $25 to $55 each to passengers who sailed with the line between April 1992 and June 1997, the company said in a filing with the U.S. Securities and Exchange Commission. The plan has received preliminary approval from a court in Florida.

Carnival offered the vouchers to settle class-action lawsuits by customers who alleged that the Miami-based company inflated port charges.

Passengers would have the option of redeeming the vouchers for as much as 20 percent of their face value in cash. If all passengers redeemed the vouchers for cash, Carnival would pay out $25 million, the company said in the filing.

Carnival shares yesterday fell 22 cents to $27.32 in New York Stock Exchange trading. The shares have risen 24 percent over the past year.