Portland General Electric Company Class Action Lawsuit
- Company Name
- Portland General Electric Company
- Stock Symbol
- Class Period
- April 24, 2020 to August 24, 2020
- District of Oregon
The Portland General Electric Company class action lawsuit charges Portland Energy and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Portland Energy securities between April 24, 2020 and August 24, 2020, inclusive (the “Class Period”). The Portland Energy class action lawsuit was commenced on September 3, 2020 in the District of Oregon and is captioned Hessel v. Portland General Electric Co., No. 20-cv-01523.
Portland General is an electric utility that engages in the generation, transmission, distribution, and retail sale of electricity in the state of Oregon. Portland General also participates in wholesale markets by purchasing and selling electricity and natural gas to meet the needs of its retail customers.
The Portland General class action lawsuit alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Portland General lacked effective internal controls over its energy trading practices; (2) Portland General personnel had entered energy trades during 2020, with increasing volume accumulating late in the second quarter and into the third quarter, that created significant negative financial exposure for Portland General; (3) as a result, Portland General was reasonably likely to incur significant losses; and (4) as a result of the foregoing, defendants’ positive statements about Portland General’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 24, 2020, after the market closed, Portland General announced that it had incurred losses of $127 million as of August 24, 2020. Portland General further stated that Portland General “personnel entered into a number of energy trades during 2020, with increasing volume accumulating late in the second quarter and into the third quarter, resulting in significant exposure to [Portland General].” In addition, Portland General announced that it had formed a Special Committee “to review the energy trading that led to the losses and [Portland General]’s procedures and controls related to the trading.” On this news, Portland General’s share price fell more than 8%, damaging investors.
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