The law firm of Berman DeValerio filed a securities class action lawsuit today against Atlantic Power Corporation (NYSE: AT)(“Atlantic Power” or the “Company”) and certain of its officers (collectively, with Atlantic Power, the “Defendants”).
The lawsuit alleges violations of United States securities laws on behalf of purchasers of Atlantic Power securities from July 23, 2010 through and including March 4, 2013 (the “Class Period”). The complaint was filed April 23, 2013 in the United States District Court for the District of Massachusetts, as Dornan v. Atlantic Power Corporation et al., 1:13-cv-10991 (D. Mass.).
Headquartered in Boston and incorporated in British Columbia, Atlantic Power is a power generation and infrastructure company with assets in the United States and Canada. The Company is engaged in power generation through hydroelectric, natural gas and coal-fired power plants, selling electricity to utilities and other large commercial customers. Atlantic Power’s shares trade under the ticker symbols “TSX” and “ATP” on the Toronto Stock Exchange and, since July 23, 2010, under the ticker symbol “AT” on the New York Stock Exchange.
During the Class Period, Atlantic Power paid investors a dividend of 10% of its profits, a much larger dividend than the 4% maximum typically paid by other publicly traded utility companies. The Company assured investors throughout the Class Period about the safety of the dividend through a series of news releases and Securities and Exchange Commission (“SEC”) filings that omitted crucial and relevant material about the dividend’s safety.
Then, on February 28, 2013, Atlantic Power disclosed that it was cutting its monthly dividend by 65% beginning in March 2013. As a result, shares of the Company’s stock declined $2.85, or 29%, to close at $7.12 per share on March 1, 2013.
The Company’s stock price fell another $1.21 per share to close at $5.91 On March 4, 2013, the same day the Royal Bank of Canada issued a research report questioning the long-term sustainability of the Company’s dividends, even after the cuts, and stating that the company would need to raise significant additional debt and common equity in 2014 and 2015 to finance its growth strategy.
Throughout the Class Period, the Defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. As a result, Atlantic Power common stock traded at artificially inflated prices, closing at a Class Period high of $16.25 per share on July 22, 2011.
The lawsuit alleges claims on behalf of all Class Period investors under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b) and 78t(a), and Rule 10b-5 promulgated thereunder by the United States Securities and Exchange Commission. It names as defendants the Company; Chief Executive Officer and President Barry E. Welch; interim Chief Financial Officer Lisa J. Donahue; and Chief Financial Officer and Executive Vice President Terrence Ronan.
Please click on the link to receive a copy of the Atlantic Power complaint or call Berman DeValerio at (800) 516-9926.
If you are a member of the class, you may, no later than May 7, 2013, request that the court appoint you as lead plaintiff for the class. You may contact Berman DeValerio to discuss your rights and interest in the case. Please note that you may also retain counsel of your choice or, alternatively, take no action at this time, in which case you will still remain a class member.
Berman DeValerio (www.bermandevalerio.com) is a national law firm representing investors for violations of securities and antitrust laws. The firm has 38 lawyers in Boston, San Francisco and Palm Beach Gardens, Florida.