Photo: Park City Professional Ski Patrol Association
Even though Vail Resorts and Park City ski patrollers were able to reach a new labor agreement last week after a strike, there is still fallout from the dispute. On Wednesday, the Pomerantz Firm, a law firm with offices across the globe, announced a probe into allegations that Vail and Park City executives “engaged in securities fraud or other unlawful business practices.”
A press release from Pomerantz announced a class action lawsuit on behalf of the company’s shareholders. In order to keep the mountain open for the New Years holiday while more than 200 workers were on strike, Vail had reassigned patrollers from some of its other resorts — Breckenridge, Crested Butte, and Keystone. That move, the release points out, risked “damaging workforce morale and creating an unsafe environment for guests.”
Online complaints from guests seemed to mimic that sentiment, eventually reaching Wall Street. And on January 2, shares of Vail Resorts (NYSE: MTN) fell $12.29 per, or 6.56 percent, to close at $175.16 per share in the midst of it all and Seeking Alpha, a financial news service, reported that shares “have come under increased selling pressure” as a result.
News of the investigation came just before Vail extended an olive branch to the public with an apology for the operational failures during the strike.
“We deeply value the trust and loyalty of our guests, and while Park City Mountain was open during the patrol strike, it was not the experience we wanted to provide,” announced Deirdra Walsh, Chief Operating Officer of Park City Mountain. “We have heard our guests’ feedback and are providing credits to those who skied and snowboarded at Park City Mountain during that time. We are committed to rebuilding the trust and loyalty of our guests by delivering an exceptional experience at Park City Mountain this season and in the future.”
The proposed credits will be available depending on whether or not Park City guests had purchased lift tickets during the strike or if they were season pass holders. Note that no refunds were announced for guests who don’t wish to come back, only discounts for those who might purchase more passes or lift tickets in the future.
In the release, the Pomerantz Firm did not mention how long its investigation would take.
