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…