Virgin Group Facing USD 300 Mln in Court Claims
- Business & Finance
British billionaire Sir Richard Branson, founder of a new cruise market entrant Virgin Cruises, is being sued by a former chief executive of Norwegian Cruise Line Colin Veitch.
In the lawsuit filed in Miami federal court on Wednesday, Veitch is seeking USD 300 million in damages claiming that Branson took his plans of breaking into cruise industry with a state-of-the-art ultra cruise ship duo capable of carrying 4,200 passengers each, writes the Associated Press.
The two partnered up on the idea to launch the cruise line, however, according to Veitch, the deal fell through once he managed to secure financing and find a builder of the two vessels, as Virgin decided to change the terms of their deal.
As claimed, Branson resumed with the plan on his own despite non-compete agreements. Veitch, who said he was to make USD 315 million from Virgin Cruises, is seeking a court order that would prevent Branson from launching the business.
Branson has refuted the claims.
Formation of the Virgin Cruises was announced by Branson in December last year with the official launch date undetermined.
The company would be based in the Miami area and plans to design and construct two modern cruise ships, Virgin said.
Branson told British newspaper The Daily Telegraph earlier this week that the company is currently discussing a USD 1bn deal for construction of the two ships.
Branson claims the new cruise liner will “ shake up the cruise industry and deliver a holiday that customers will absolutely love.”
World Maritime News Staff