Faruqi & Faruqi Alert: Plains All American Pipeline, L.P. and Plains GP Holdings, L.P.
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Plains All American Pipeline, L.P. (“Plains”) (NYSE:PAA) and in Plains GP Holdings, L.P. (“Plains GP” and together the “Companies”) (NYSE:PAGP) of the October 16, 2015 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Companies and certain officers.
The lawsuit has been filed in the United States District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased Common Units of Plains between February 27, 2013 and August 4, 2015 as well as the Class A Shares of Plains GP between October 16, 2013 and August 4, 2015. Furthermore, the lawsuit also brings claims on behalf of a class consisting of all persons or entities who purchased Plains GP Class A Shares pursuant and/or traceable its initial public offering conducted on or about October 16, 2013, as well as a registered public offering of Plains Holdings Class A Shares conducted on or about November 10, 2014.
The complaint alleges that the Companies and their executives violated federal securities laws by failing to disclose the lack of integrity concerning the Companies’ pipeline monitoring, maintenance and spill response measures, as well as their compliance with federal regulations governing its pipeline operations. The complaint cites that executives of Plains qualified its Line 901 pipeline and operations off the coast of Santa Barbara, California as “state of the art,” with an oil spill being qualified as “extremely unlikely.”
Contrary to these statements, on May 19, 2015, Line 901 ruptured but was dismissed to be a small spill according to Plains’ executives, estimating 2,400 barrels being released into the federally protected and environmentally sensitive Pacific coastline. However, on August 5, 2015, the Company reported that the extent of the spill was much greater than initially estimated, and that the U.S. Department of Justice had initiated a criminal investigation into the spill.
In response to the gradual disclosure of the actual size of the spill, Plains’ share price dropped from a closing price of $ 49.59 per share on May 19, 2015, to a closing price of $35.95 on August 5, 2015—a $13.64 or a 27.5% drop.
Similarly, Plains GP Class A Shares’ share price dropped from a closing price of $ 24.38 per share on August 4, 2015, to a closing price of $18.73 on August 5, 2015—a $5.65 or a 23.2% drop.
If you invested in the Companies’ stock or options between February 27, 2013 and August 4, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding the Companies’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.