BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Teekay Corporation (“Teekay” or the “Company”) (NYSE: TK) securities between June 30, 2015 and December 17, 2015, inclusive (the “Class Period”). Teekay investors have until May 2, 2016 to file a lead plaintiff motion.
Investors who suffered losses on their Teekay investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by e-mail to email@example.com.
The complaint alleges that throughout the Class Period, Defendants issued false and misleading statements to investors and/or failed to disclose that: (1) Teekay’s repeated assurances that it would maintain a quarterly dividend of at least $0.55 per share were baseless; (2) Teekay knew, based on then-present facts, that it could not support future dividend payments in excess of $0.55 per share; and (3) the cash flows from Teekay’s master limited partnerships – Teekay LNG Partners LP and Teekay Offshore Partners LP – could not possibly sustain such high dividends.
Teekay primarily receives most of its revenue from distributions paid by its master limited partnerships Teekay LNG Partners LP and Teekay Offshore Partners LP. Due to this relationship, the higher the distributions paid by the master limited partners to their investors, the more money that Teekay could then distribute in dividends to investors.
However, on December 16, 2015, Teekay disclosed that it was reducing its dividend by as much as 90%. Consequently, the price of Teekay common stock fell sharply from $17.49 on December 16 to just $8.15 on March 2, 2016.
If you purchased shares of Teekay during the Class Period you may move the Court no later than May 2, 2016 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by e-mail to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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