Atlantic Power Corporation
ROBBINS GELLER RUDMAN & DOWD LLP ANNOUNCES EXPANDED CLASS PERIOD IN CLASS ACTION SUIT AGAINST ATLANTIC POWER CORPORATION
New York – March 14, 2013 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/atlanticpower/) today announced that a class action has been commenced in the United States District Court for the District of Massachusetts on behalf of purchasers of Atlantic Power Corporation (“Atlantic Power” or the “Company”) (TSX:ATP) (NYSE:AT) common stock during an expanded class period from July 23, 2010 through March 4, 2013, inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from March 8, 2013. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs’ counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/atlanticpower/. 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.
The complaint charges Atlantic Power and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Defendant Atlantic Power is a power generation and infrastructure company with a portfolio of assets in the United States and Canada. The Company is engaged in power generation through hydro, natural gas and coal fired power plants.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business practices and financial results. Specifically, the complaint alleges that: (i) the cash flows the Company was using to pay a 10% dividend payout were being funded by revenues derived from companies Atlantic Power was spending tens of millions of dollars to acquire during the Class Period; (ii) Atlantic Power’s losses from operations were mounting, jeopardizing the Company’s ability to maintain the outsized dividend payment; and (iii) defendants knew that many of the Company’s project contracts were scheduled to expire over the course of 2013, meaning cash flows from those projects would be substantially lower after those contracts ended, and unbeknownst to investors, Atlantic Power was not replacing those contracts – further jeopardizing its ability to maintain the outsized dividend payment that was supporting its stock price. As a result of defendants’ materially false and misleading statements, Atlantic Power common stock traded at artificially inflated prices throughout the Class Period, reaching an intraday high of $16.28 per share by August 1, 2012.
According to the complaint, as the market learned the truth about Atlantic Power’s mounting losses and its inability to maintain its outsized dividend through a number of misleading financial disclosures between November 7, 2012 and March 4, 2013, more than $1 billion of the Company’s market capitalization disappeared.
Plaintiffs seek to recover damages on behalf of all purchasers of Atlantic Power common stock during the Class Period (the “Class”), including purchasers in the Company’s registered public follow-on stock offerings on October 13, 2010, October 13, 2011, and June 27, 2012, and those who acquired shares pursuant to Atlantic Power’s dividend reinvestment plan commenced on August 8, 2012. The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld