NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of investors that purchased Cabot Oil & Gas Corporation (NYSE: COG) securities between October 23, 2015 and June 12, 2020 (the “Class Period”). Investors have until October 13, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Cabot was incorporated in 1989 and is headquartered in Houston, Texas. Cabot is an independent oil and gas company that explores for, exploits, develops, produces, and markets oil and gas properties in the U.S.
Cabot primarily focuses its oil and gas efforts on the Marcellus Shale located in Susquehanna County, Pennsylvania. Cabot’s gas procuring activities in Pennsylvania have been the subject of controversy for over a decade, with the Company repeatedly denying any responsibility for environmental damage observed in the state.
On July 26, 2019, Cabot filed a quarterly report on Form 10-Q with the SEC, reporting the Company’s financial and operating results for the quarter ended June 30, 2019 (the “2Q19 10-Q”). The 2Q19 10-Q disclosed that the Company had received two proposed Consent Order and Agreements (“CO&As”) related to two Notices of Violation (“NOVs”) it had received from the Pennsylvania Department of Environmental Protection (“PaDEP”) back in June and November, 2017, respectively, for failure to prevent the migration of gas into fresh groundwater sources in the area surrounding Susquehanna County, Pennsylvania.
Following the release of the 2Q19 10-Q, Cabot’s stock price fell $2.63 per share, or 12.07%, to close at $19.16 per share on July 26, 2019.
Then, on June 15, 2020, during pre-market hours, following a grand jury investigation, the Pennsylvania attorney general’s office charged Cabot with fifteen criminal counts arising from its failure to fix faulty gas wells, thereby polluting Pennsylvania’s water supplies through stray gas migration.
On this news, Cabot’s stock price fell $0.67 per share, or 3.34%, to close at $19.40 per share on June 15, 2020.
The complaint, filed on August 13, 2020, 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) Cabot had inadequate environmental controls and procedures and/or failed to properly mitigate known issues related to those controls and procedures; (ii) as a result, Cabot, among other issues, failed to fix faulty gas wells, thereby polluting Pennsylvania’s water supplies through stray gas migration; (iii) the foregoing was foreseeably likely to subject Cabot to increased governmental scrutiny and enforcement, as well as increased reputational and financial harm; (iv) Cabot continually downplayed its potential civil and/or criminal liabilities with respect to such environmental matters; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased Cabot Oil & Gas securities during the Class Period, are a long-term stockholder, 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 Melissa Fortunato or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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