Royal Caribbean Cruise Lines 2008 Annual Report Download - page 35

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Royal Caribbean Cruises Ltd. 19
PART I
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 and certain remedial actions. Following discussions
with the EEOC regarding this matter, the EEOC informed us that they
transferred the matter to its legal unit for litigation review. To date, no
legal proceedings have been initiated. We do not believe that this
matter will have a material adverse impact on our financial condition
or results of operations.
The Florida Attorney General’s office is investigating whether there is
or has been a violation of state or federal anti-trust laws in connection
with the setting by us and other cruise line operators of fuel supple-
ments in 2007. We are cooperating with the Attorney General’s office
in connection with this investigation and are not able at this time to
estimate the impact of this investigation.
In October 2008, we were named as a defendant in a purported class
action filed in the United States District Court, Western District of
Washington against Park West Galleries, Inc. (“Park West”), Fine Arts
Sales, Inc., HSBC Bank Nevada, NA, HSBC Finance Corporation, Holland
America Line Inc., Holland America Line – USA Inc. and other unnamed
parties on behalf of purchasers of artwork from Park West. The suit
alleges that Park West sold art pieces that Park West falsely claimed
were authored by certain artists. The suit seeks damages and equitable
relief on behalf of the class members and alleges claims for violation of
the Racketeer Influenced and Corrupt Organizations Act (RICO), breach
of contract, statutory fraud and other similar claims. Park West has a
concession to sell artwork onboard Royal Caribbean International and
Celebrity Cruises ships. In January 2009, we were dismissed without
prejudice from the case.
We are routinely involved in other claims typical within the cruise vaca-
tion industry. The majority of these claims are covered by insurance. We
believe the outcome of such claims, net of expected insurance recover-
ies, will not have a material adverse impact on our financial condition
or results of operations.
ITEM 4. SUBMISSION OF MATTERS TO
A VOTE OF SECURITY HOLDERS
None.