Royal Caribbean Cruise Lines 2009 Annual Report Download - page 102

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ROYAL CARIBBEAN CRUISES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Miami District Office of the United States Equal Employment Opportunity Commission (“EEOC”) has alleged that certain
of our shipboard employment practices do not comply with United States employment laws. In June 2007, the EEOC proposed
payment of monetary sanctions of approximately $27.0 million and certain remedial actions. Following discussions with the EEOC
regarding this matter, the EEOC informed us in April 2008 that they transferred the matter to its legal unit for litigation review. To
date, no legal proceedings have been initiated. We believe we have meritorious defenses to these claims and, if proceedings are
initiated, we intend to vigorously pursue them.
In 2008, the Office of the Attorney General of Florida initiated an investigation to determine whether there had been a violation
of Florida or Federal anti-trust laws in connection with the imposition of supplemental charges for fuel implemented by a number of
cruise lines. The Attorney General sought and received documentary information from the Company. In February 2010, the Company
was informed that the Attorney General has no plans to take any further action.
In January 2006, a purported class action lawsuit was filed in the United States District Court for the Southern District of New
York alleging that we and certain other named cruise lines infringed rights in copyrighted works and other intellectual property by
presenting performances on our cruise ships without securing the necessary licenses. In March 2009, the Court dismissed the
complaint for failure to state a claim with sufficient particularity but granted leave to re-file. In April 2009 plaintiffs filed an amended
complaint with substantially the same allegations as the original complaint except that it no longer seeks class action treatment and
confines its allegations of infringement to plaintiffs’ copyrights of the theatrical production of Grease. The suit seeks payment of
damages against all named defendants in an undetermined amount of not less than $10.0 million, as well as disgorgement of profits, a
permanent injunction against future infringement and punitive and treble damages. We have filed a motion to dismiss the amended
complaint or, alternatively, to sever and transfer the case to the United States District Court for the Southern District of Florida. We
believe we have meritorious defenses to these claims which we will continue to vigorously pursue.
In July 2009, three purported class actions were filed in United States District Court for the Eastern District of Michigan against
Park West Galleries, Inc., doing business as Park West Gallery, PWG Florida, Inc., Fine Art Sales, Inc., Vista Fine Art LLC, doing
business as Park West At Sea (together, “Park West”), and other named and unnamed parties, including Royal Caribbean Cruises Ltd.
and Celebrity Cruises Inc. and other unaffiliated cruise line companies. The actions are being brought on behalf of purchasers of
artwork at shipboard art auctions conducted by Park West on the named cruise lines. All three actions were subsequently transferred
to the United States District Court for the Western District of Washington and are no longer being brought on a class action basis.
Also pending in the Western District of Washington as a result of transfer are two other actions against Park West and other
unaffiliated cruise line companies that, after being transferred, were amended to add Royal Caribbean Cruises Ltd. and Celebrity
Cruises Inc. as defendants. One of these actions is being brought on a class action basis. The substance of the claims in all five actions
is virtually the same. The suits allege that the artwork Park West sells is not what it represents to its customers and that Royal
Caribbean Cruises Ltd., Celebrity Cruises Inc. and other named cruise lines are complicit in the activities of Park West, including
engaging in a conspiracy with Park West in violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), and are
being enriched unjustly from the sale of the artwork. The actions seek from the named defendants refund and restitution of all monies
acquired from the sale of artwork at shipboard auctions, recovery for the amount of payments for the purchased artwork, damages on
the RICO claims in an indeterminate amount, permitted statutory damages and unspecified equitable or injunctive relief. The suits
also seek from certain non-Royal Caribbean parties additional statutory, breach of contract and breach of warranty damages in
unspecified amounts. The suits are at their very early stages of litigation; however, we believe we have meritorious defenses to the
claims against us and we intend to vigorously pursue them.
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