NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in PG&E Corporation (“PG&E” or the “Company”) (NYSE: PCG) of the August 13, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in PG&E stock or options between August 15, 2017 and July 26, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/PCG. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased PG&E securities between April 29, 2015 and June 8, 2018 (the “Class Period”). The case, Weston v. PG&E Corporation et al., No. 18-cv-03509 was filed on June 12, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) PG&E had failed to maintain electricity transmission and distribution networks in compliance with safety requirements and regulations promulgated under state law; (ii) consequently, PG&E was in violation of state law regulation; (iii) PG&E’s electricity networks would cause numerous wildfires in California; and (iv) as a result of the foregoing, PG&E’s statements about the Company’s business and operations were materially false and misleading at all relevant times.
Specifically, on or about October 11, 2017, various news outlets reported that Californian authorities and officials were looking at whether PG&E’s power lines had caused numerous wildfires started in California, burning at least 245,000 acres and devastating properties in Sonoma, Mendocino, Lake, Santa Rosa, Napa, Humboldt, Butte, and Solano counties.
After the announcement, PG&E’s share price fell from $69.15 per share on October 11, 2017 to a closing price of $53.43 on October 16, 2017—a $15.72 or a 22.73% drop.
Then, on December 20, 2017, PG&E issued a press release, also attached as exhibit 99.1 to the Form 8-K filed with the Securities Exchange Commission announcing the suspension of its cash dividend. Therein, PG&E stated that it was suspending its quarterly cash dividend on the Company’s common stock “beginning with the fourth quarter of 2017 citing uncertainty related to causes and potential liabilities associated with the extraordinary October 2017 Northern California wildfires.”
After the announcement, PG&E’s share price fell from $51.52 per share on December 20, 2017 to a closing price of $44.50 on December 21, 2018—a $7.02 or a 13.6258% drop.
Then, on May 25, 2018, the California Department of Forestry and Fire Protection (“CAL FIRE”) issued a press release announcing the cause of four wildfires in Butte and Nevada counties, stating among other things, that “[t]he investigation found evidence that PG&E allegedly failed to remove a tree from the proximity of a power line, in violation of the state Public Resources Code section 4293.”
After the announcement, PG&E’s share price fell from $44.66 per share on May 25, 2018 to a closing price of $42.34 on May 29, 2018—a $2.32 or 5.19% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding PG&E’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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