Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against The Chemours Company, PG&E Corporation, and Third Coast Midstream and Encourages Investors to Contact the Firm
NEW YORK, Nov. 8, 2019 /PRNewswire/ -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of The Chemours Company (NYSE: CC), PG&E Corporation (NYSE: PCG), and Third Coast Midstream f/k/a American Midstream Partners, LP. Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
The Chemours Company (NYSE: CC)
Class Period: February 16, 2017 to August 1, 2019
Lead Plaintiff Deadline: December 9, 2019
Chemours is a spin-off of the Performance Chemicals division of industrial conglomerate E.I. du Pont de Nemours and Company ("DuPont"). Chemours began trading as its own public company in 2015. The spin-off was completed pursuant to a Separation Agreement that required Chemours to protect DuPont for historic environmental liabilities. The action arises from Defendants' misrepresentations and omissions relating to Chemours' statements and accruals for environmental liabilities arising from its decades-long production, use, and discharge of chemicals manufactured by the Performance Chemicals division, including perfluoroalkyl and polyfluoroalkyl substances ("PFAS")—toxic chemicals that have become the basis for environmental regulatory actions, prosecutions, personal injury lawsuits, and extensive remediation efforts.
The complaint, filed on October 8, 2019, alleges that, throughout the Class Period, defendants misled investors by representing that Chemours had appropriately accounted and accrued reserves for its environmental liabilities, that the possibility of costs exceeding accrued amounts was "remote," and that, in any event, additional costs would not be material. Chemours also assured investors that its "policies, standards and procedures are properly designed to prevent unreasonable risk of harm to people and the environment," and that its "handling, manufacture, use and disposal of hazardous substances are in accordance with applicable environmental laws and regulations." As a result of these misrepresentations, Chemours shares traded at artificially inflated prices throughout the Class Period.
A series of disclosures beginning on May 6, 2019, culminating on August 1, 2019 when the Company revealed the truth about its environmental practices, and that Chemours' liabilities were far greater than the Company had represented. These disclosures included the June 28, 2019 unsealing of a complaint Chemours had filed under seal against DuPont on May 13, 2019, in which Chemours made detailed allegations that its spin-off from DuPont was part a deliberate plan by DuPont to rid itself of significant exposures incurred through decades of PFAS discharge and to unload that responsibility onto Chemours. These disclosures triggered sharp declines in the price of Chemours stock. Chemours shares price fell from $34.18 per share on May 3, 2019 to close at $14.69 per share on August 2, 2019.
For more information on the Chemours class action got to: https://bespc.com/cc
PG&E Corporation (NYSE: PCG)
Class Period: December 11, 2018 to October 11, 2019
Lead Plaintiff Deadline: December 23, 2019
On October 12, 2019, the New York Times published an article reporting on PG&E's efforts to deal with the rolling power cuts it had implemented in California aimed at minimizing wildfire risk. The article reported, among other issues, that "PG&E's communications and computer systems faltered, and its website went down as customers tried to find out whether they would be cut off or spared." According to the article, "[a]s the company struggled to tell people what areas would be affected and when, chaos and confusion unspooled outside. Roads and businesses went dark without warning, nursing homes and other critical services scrambled to find backup power and even government agencies calling the company were put on hold for hours."
On this news, PG&E's stock price fell $0.35 per share, or 4.36%, to close at $7.67 per share on October 14, 2019.
On October 23, 2019, it was reported that as a last resort to prevent additional wildfires PG&E began shutting off power to 179,000 homes and businesses in 17 northern and central California counties.
On this news, PG&E's stock price fell $1.00 per share, or 12.2%, to close at $7.20 on October 24, 2019.
The complaint, filed on October 25, 2019, alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) PG&E's purportedly enhanced wildfire prevention and safety protocols and procedures were inadequate to meet the challenges for which they were ostensibly designed; (ii) as a result, PG&E was unprepared for the rolling power cuts the Company implemented to minimize wildfire risk; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
For more information on the PG&E class action go to: https://bespc.com/pcg
Third Coast Midstream f/k/a American Midstream Partners, LP
Class Period: All former owners of American Midstream stock who sold their stock, and were damaged thereby.
Lead Plaintiff Deadline: December 9, 2019
American Midstream is a growth-oriented master limited partnership formed to own, operate, develop, and acquire a diversified portfolio of midstream energy assets. At all relevant times, American Midstream's general partner was American Midstream GP, LLC (the "General Partner"). The General Partner was solely responsible for supporting and conducting the business operations of American Midstream.
The complaint, filed on October 10, 2019, alleges that ArcLight Capital Partners, LLC ("ArcLight") was the Company's majority stockholder and had control over the General Partner. Therefore, ArcLight ensured that the majority of American Midstream's Board of Directors were all affiliated with ArcLight, and had the ability to control the Company's quarterly distribution.
On July 27, 2018, American Midstream declared a 75 percent reduction in the Company's quarterly common stock distribution. As a result of this reduction, American Midstream's stock price declined over 42 percent, falling precipitously from $11.55 to $6.60 on July 27, 2018.
Then, on December 31, 2018, American Midstream reported that because of an amendment to its credit facility agreement, it did not expect to make any distributions to its stock holders in the upcoming fourth quarter of 2018, and would continue to withhold said distributions until its consolidated total leverage ratio was reduced. On this news, American Midstream's stock declined $1.30, or 30 percent, closing at a price of $3.03 per share on December 31, 2018.
On March 18, 2019, American Midstream publicly disclosed it had entered into a merger agreement with a subsidiary of ArcLight pursuant to which American Midstream stockholders would receive $4.50 per share. On July 23, 2019, American Midstream announced the closing of the merger.
Therefore, as a result of the distribution cuts put in place by virtue of ArcLight's control over the Company, American Midstream minority stockholders received approximately 60 percent less consideration for their shares than the common stock price immediately prior to the distribution cut on July 27, 2018.
If you were a former owner of American Midstream stock and sold your shares at a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon.
For more information on the American Midstream class action go to: https://bespc.com/americanmidstream
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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