PG&E Corporation Class Action Lawsuit
- Company Name
- PG&E Corporation
- Stock Symbol
- Class Period
- December 11, 2018 to October 11, 2019
- Motion Deadline
- December 24, 2019
- Northern District of California
On October 25, 2019, the PG&E Corporation class action lawsuit was filed charging certain of PG&E’s officers with violations of the Securities Exchange Act of 1934. The PG&E class action lawsuit was commenced in the Northern District of California on behalf of purchasers of PG&E securities between December 11, 2018 and October 11, 2019 (the “Class Period”) and is captioned Vataj v. Johnson, No. 4:19-cv-06996.
PG&E, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to residential, commercial, industrial, and agricultural customers in northern and central California.
On January 29, 2019, PG&E filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California. The Chapter 11 petition followed in the wake of multiple high-profile lawsuits against PG&E related to widely publicized and catastrophic wildfire incidents that occurred in California in 2015, 2017, and 2018. The incidents were blamed on PG&E, whose alleged misconduct apparently caused PG&E’s equipment to ignite the wildfires. PG&E is facing $30 billion in liabilities in connection with the wildfires.
Following the wildfire incidents, PG&E began periodically initiating rolling power outages across its customers’ facilities and service areas. The blackouts were intended to reduce the risk of future wildfire events and were scheduled for times when dangerous weather conditions exacerbated the chances of wildfires occurring.
The PG&E class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding PG&E’s business and operations. Specifically, defendants failed to disclose that PG&E’s purportedly enhanced wildfire prevention and safety protocols and procedures were inadequate to meet the challenges for which they were ostensibly designed, and as a consequence, PG&E was unprepared for the rolling power outages PG&E was implementing to minimize wildfire risk. As a result of this information being withheld from the market, PG&E securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $24 per share.
Then on October 12, 2019, The New York Times published an article reporting on PG&E’s efforts to deal with the rolling power cuts it had implemented in California aimed at minimizing wildfire risk. The article reported, among other issues, that “PG&E’s communications and computer systems faltered, and its website went down as customers tried to find out whether they would be cut off or spared.” According to the article, “[a]s the company struggled to tell people what areas would be affected and when, chaos and confusion unspooled outside. Roads and businesses went dark without warning, nursing homes and other critical services scrambled to find backup power and even government agencies calling the company were put on hold for hours.” On this news, PG&E’s stock price fell more than 4%, to close at $7.67 per share on October 14, 2019, the following trading day.
Subsequently, on October 23, 2019, it was reported that as a last resort to prevent additional wildfires, PG&E had begun shutting off power to 179,000 homes and businesses in 17 northern and central California counties. Following this news, PG&E’s stock price fell $1.00 per share, or more than 12%, to close at $7.20 on October 24, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased PG&E securities during the Class Period to seek appointment as lead plaintiff in the PG&E class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the PG&E class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the PG&E class action lawsuit. An investor’s ability to share in any potential future recovery of the PG&E class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the PG&E class action lawsuit or have questions concerning your rights regarding the PG&E class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the PG&E class action lawsuit must be filed with the court no later than December 24, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.