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 Energy Transfer LP (“Energy Transfer” or the “Company”) (NYSE: ET) common stock between April 13, 2017 and December 20, 2021, inclusive (the “Class Period”). Energy Transfer investors have until August 2, 2022 to file a lead plaintiff motion.
Investors suffering losses on their Energy Transfer 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 email to firstname.lastname@example.org.
On August 8, 2019, Energy Transfer disclosed that in mid-2017, the Federal Energy Regulatory Commission (“FERC”) Enforcement Staff initiated a non-public formal investigation “regarding allegations that diesel fuel may have been included in the drilling mud at the Tuscarawas River HDD [i.e., Horizontal Directional Drilling Activities].”
On this news, Energy Transfer’s stock fell $0.65, or 4.6%, over two trading days to close at $13.38 per share on August 12, 2019, thereby injuring investors.
Then, on December 16, 2021, FERC publicly issued to Energy Transfer the Order To Show Cause and Notice of Proposed Penalty, directing the Company to show cause why it should not be assessed a civil penalty in the amount of $40 million. The order alleged that the HDD crews intentionally included diesel fuel and other toxic substances and unapproved additives in the drilling mud during its HDDs under the Tuscarawas River.
On this news, Energy Transfer’s stock fell $0.24, or 2.8%, over two trading days to close at $8.25 per share on December 20, 2021, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Energy Transfer had inadequate internal controls and procedures to prevent contractors from engaging in illegal conduct with regards to drilling activities, and/or failed to properly mitigate known issues related to such controls and procedures; (2) Energy Transfer through its subsidiary Rover Pipeline, LLC hired third-party contractor to conduct HDD for the Rover Pipeline Project, whose conduct of adding illegal additives in the drilling mud caused severe pollution near the Tuscarawas River when a large inadvertent release took place on April 13, 2017; (3) Energy Transfer continually downplayed its potential civil liabilities when the FERC was actively investigating the Company’s wrongdoing related to the April 13 Release and consistently provided it with updated information about FERC’s findings on this matter; (4) these issues were foreseeably likely to subject Energy Transfer to increased governmental scrutiny and enforcement, as well as increased reputational and financial harm, and would also materially impact Energy Transfer’s financial results; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Energy Transfer common stock, have information or 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 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 email to email@example.com, or visit our website at www.howardsmithlaw.com.
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