Aegean Marine Petroleum Network Inc.
- Company Name
- Aegean Marine Petroleum Network Inc.
- Stock Symbol
- Class Period
- April 28, 2016 to June 4, 2018
- Motion Deadline
- August 4, 2018
- Southern District of New York
The complaint charges Aegean and certain of its officers with violations of the Securities Exchange Act of 1934. Aegean is a marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to vessels in port, at sea and on rivers.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Aegean’s business and financial condition. Specifically, the complaint alleges that, unbeknownst to investors, Aegean had improperly accounted for approximately $200 million of accounts receivable as of December 31, 2017 and had failed to maintain effective internal control over its financial reporting. As a result of this information being withheld from investors during the Class Period, the price of Aegean common stock was artificially inflated to as high as $12.95 per share.
On May 22, 2018, Aegean announced that its Audit Committee was performing an “assessment of internal controls over financial reporting” along with an “internal review of its financial reporting.” In addition, the Company stated that its “Audit Committee [wa]s conducting a review of certain matters relevant to the preparation and completion of the Company’s annual financial statements,” which would delay the filing of its 2017 Form 20-F. Then on June 5, 2018, Aegean filed a Form 6-K announcing the preliminary findings of its Audit Committee’s internal review, including that “approximately $200 million of accounts receivable owed to the Company at December 31, 2017 will need to be written off.” Per the 6-K, certain “transactions that gave rise to the accounts receivable . . . may have been, in full or in part, without economic substance and improperly accounted for.” On this news, the price of Aegean common stock fell $2.03 per share, or 71%, to close at $0.82 per share on June 5, 2018.