NCLH and Directors Fight to Dismiss Frank Del Rio Consulting Pay Lawsuit

Former Norwegian Cruise Line CEO Frank Del Rio is suing the company over $8 million he says he’s owed. Norwegian is now fighting back in court.

Norwegian Cruise Line Asks Court to Dismiss CEO’s Lawsuit

Norwegian Cruise Line Holdings (NCLH) wants a Florida court to throw out a lawsuit from its former CEO. Frank Del Rio claims the company broke a verbal promise worth millions of dollars.

What Is the Lawsuit About?

Del Rio led Norwegian from 2015 until he stepped down in mid-2023. He says he struck a deal with then-Chairman Russell Galbut to work as a consultant for four and a half years. The pay? One million dollars per quarter, adding up to $18 million total.

Here’s where it gets interesting. Del Rio says this deal was agreed upon at an “unofficial” meeting held in Galbut’s suite aboard the Norwegian Prima. That happened during the ship’s launch event.

The Written Contract Told a Different Story

When the actual paperwork arrived, the contract only covered 2.5 years and $10 million. Del Rio claims he was told Norwegian couldn’t show shareholders an $18 million package. The company had already faced a string of failed “say-on-pay” votes from shareholders who felt executives were paid too much.

According to Del Rio, the directors promised him the remaining two years would be added to the contract later. He signed the agreement based on that assurance. He received 10 quarterly payments before Norwegian stopped paying after December 31, 2025.

How Norwegian Is Fighting Back

Norwegian flatly denied that any verbal side deal ever existed. The company called the lawsuit “ill-advised.” Norwegian argues that the signed contract is the complete agreement between both parties.

The company pointed to the contract’s own language. It clearly set the consulting period through December 31, 2025. It also stated that any extension needed a written amendment signed by both sides.

Norwegian also raised a key legal argument. Florida law does not allow someone to override a written contract with a contradictory verbal agreement. The company also argued the alleged oral deal would be blocked by Florida’s Statute of Frauds, since it couldn’t be completed within one year.

Norwegian went even further. It argued that Del Rio’s own story suggests he helped hide executive pay from shareholders. That, the company says, would violate federal securities law.

What About the Individual Directors?

Four former directors were also named in the suit. Russell Galbut, Harry Curtis, Mary Landry, and Stella David each filed their own motion to dismiss.

These directors argued that Del Rio is trying to make a corporate contract dispute into a personal legal matter. They cited Florida law, which protects corporate directors from personal liability in situations like this. They also noted there was no board vote, no meeting minutes, and no signed amendment to support Del Rio’s claims.

The directors also argued that a company legally cannot conspire with its own board members. That argument targets one of the four counts in Del Rio’s complaint.

A Few More Key Details

Two other directors, Adam Aron and David Abrams, are mentioned in the complaint as having given Del Rio assurances. However, neither was actually sued.

Stella David, who is now Norwegian’s chairwoman, reportedly told Del Rio in February that his payments were finished. He then received a letter from Norwegian’s attorneys on March 2 confirming the same. All defendants also asked the court to move the case to its Complex Business Litigation Division.

This case is still developing, and it’s worth watching for cruise industry followers. It gives a rare peek behind the curtain at how major cruise line leadership deals are made — and what can happen when things go sideways.