Just Energy Group Inc.
- Company Name
- Just Energy Group Inc.
- Stock Symbol
- Class Period
- November 9, 2017 to July 23, 2019
- Motion Deadline
- September 29, 2019
- Southern District of New York
The complaint charges Just Energy and certain of its officers with violations of the Securities Exchange Act of 1934. Just Energy is a retail consumer company specializing in electricity and natural gas commodities, energy efficiency solutions, and renewable energy options, with offices located across the United States, Canada, the United Kingdom, Ireland, Germany and Japan.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business and operations. Specifically, defendants failed to disclose that, as a result of Just Energy’s lack of adequate internal control over financial reporting, the Company was experiencing customer enrollment and nonpayment issues and was reasonably likely to incur an impairment charge to its accounts receivable. As a result of this information being withheld from the market, Just Energy securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $5 per share.
Then on July 23, 2019, the Company disclosed that it had “identified customer enrolment [sic] and non-payment issues, primarily in Texas, over the past 12 months,” and that, as a result, it “expect[ed] an incremental impairment of the Texas residential accounts receivable of approximately CAD $45 to $50 million.” On this news, the price of the Company’s stock fell $0.66 per share, or more than 15%, to close at $3.72 per share on July 23, 2019.