The company said it received derivative demand letters from legal counsel for purported shareholders beginning in January 24, 2023, and that 6 shareholder derivative suits were filed from June 13, 2023 through July 26, 2024.

1. 01

   The company said it received derivative demand letters from legal counsel for purported shareholders beginning in January 24, 2023, and that 6 shareholder derivative suits were filed from June 13, 2023 through July 26, 2024.

2. 02

   The company said the demand letters alleged that directors and officers failed to make sufficient investments in internal technology systems and did not provide sufficient oversight of operations in connection with the service disruptions in December 2022. The letters also alleged unwarranted compensation, materially misleading public statements and breaches of fiduciary duty.

3. 03

   Southwest said the Special Litigation Committee (SLC) completed the investigation it began in July 2023 and delivered its report and resolution on September 19, 2024 to the company and its Board on September 23, 2024. The SLC determined that pursuing the relief sought in the lawsuits is not in the best interests of the company or its shareholders.

4. 04

   The company said it plans to reject the derivative demands and move to dismiss the derivative actions, following the SLC's unanimously adopted resolution. It also said the lawsuits had been stayed pending the outcome of the SLC's investigation.

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AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

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