Celebrity Cruises files $300 million suit

Celebrity Cruises has filed a $300 million lawsuit against Rolls Royce and Alstom Power Conversion, co-producers of a ship pod-propulsion system, to recover lost revenue and costs associated with failing pods.

Celebrity Cruises filed a $300 million lawsuit against Rolls Royce and Alstom Power Conversion, co-producers of a ship pod-propulsion system, to recover lost revenue and costs associated with failing pods. The lawsuit was filed in state court in Miami-Dade County, Florida.

The lawsuit alleges that the Rolls Royce and Alstom Power Conversion pods, brand-named Mermaid, have failed repeatedly, resulting in cancelled cruises. These recurring failures are said to have cost the company hundreds of million of dollars.

The lawsuit further claims that Rolls Royce and Alstom Power Conversion misrepresented their product, which was ‘defectively designed’ and ‘deceptively and fraudulently marketed.’

Mermaid pods are installed on four Celebrity ships – Millennium, Summit, Infinity and Constellation. All four had one or more mechanical or electrical problems with the pods, which caused the ships to be taken out of service to repair.

‘Unfortunately, the Mermaid pods have not lived up to the manufacturers’ promise or to Celebrity’s high operating standards,’ said Jack Williams, president and chief operating officer of Celebrity. ‘This has created intolerable consequences for our guests, and imposed unacceptable conditions on our company.’