In our last blog, our cruise ship passenger law firm noted that former Carnival CEO cashed a few stocks – and by a few we mean millions upon millions of dollars. But the real question is why. Let’s take a look at Arison’s recent actions and see if we can’t figure out what would lead one of the richest people in the world to liquidate these assets.
Just last week, Arison sold over $40,000,000 in Carnival stock in one transaction, then $17,900,000 in stock in another. The week before, Arison sold nearly $38,700,000 in stock. Then back in March, Arison got rid of another $395,000,000 in stock. That’s a pretty big chunk of change, which begs the question: Why is Arison getting rid of all his shares?
Does Arison foresee the stock crashing? Is there some sort of internal problem with Carnival the public may not know about? Or, perhaps we’re making a big deal out of it and Arison just wants to free up some cash to make a big purchase. But no matter what the reason, selling such an extraordinary amount of stock in the company he helped build during his reign as CEO can’t help but raise some eyebrows.
Last year, Arison announced he was stepping down as CEO, which came as a huge surprise to many who revered the cruise mogul and the Arison Carnival dynasty in general. Some thought Arison’s move was indicative that he wanted to avoid being at the forefront of cruise ship accident and crime scandals, while others believed his move was the result of his choice to concentrate more on his other money-making business, the Miami Heat. We may never know the real reasons behind his choices in either scenario, but we do now know Arison has lots of cash to spare. Hopefully at least some of it will go to those persons who have harmed or wronged by the direct result of Canrnival’s negligence.
It’s certainly sad to note that some cruise passengers who have suffered terrible injuries or losses may never obtain the compensation they deserve, because the multibillion-dollar franchise (like all the cruise lines) imposes certain obstacles in its passenger ticket contract that seek to limit the company’s liability or exposure in an accident, mass tragedy, or crime incident. That, and also the fact that Carnival – and most other cruise companies – register ships outside the U.S., which means the companies can avoid the stricter maritime laws of our country and abide by much more lax – if any – laws in foreign nations. Cruise lines fight tooth and nail to enforce the draconian provisions contained in their one-sided ticket contracts, , which is why it’s so critical for those involved in an accident or crime to contact a maritime attorney for assistance immediately following the incident.
Hey, maybe Arison is going to donate the money to a cruise victims’ charity. Dare to dream. But regardless of what he does with his funds, it’s apparent that crimes and accidents on cruise ships continue to happen at an alarming rate and it doesn’t look like that rate is going to decrease anytime soon.
Published on June 17, 2014
Categories: Cruise Ship Law