NEW YORK, NY--(Marketwired - September 02, 2015) -
Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action on behalf of the Jacksonville Police and Fire Pension Fund ("Jacksonville P&F") in the U.S. District Court for the Southern District of Texas alleging claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in the Common Units of Plains All American Pipeline, L.P. ("Plains" or the "Company") (
The Complaint was filed as related to an action against Plains pending in the U.S. District Court for the Southern District of Texas before the Honorable Lee H. Rosenthal, captioned City of Birmingham Firemen's and Policemen's Supplemental Pension System v. Plains All American Pipeline, L.P. , No. 4:15-cv-02404 (S.D. Tex.). As noted below, pursuant to a notice that was previously published by BLB&G in connection with a prior action filed against Plains in the Central District of California, the deadline to file a motion seeking appointment as Lead Plaintiff in this matter is October 16, 2015.
The Complaint alleges that during the Class Period, Plains, Plains Holdings and certain of its senior executives violated provisions of the Exchange Act by issuing false and misleading statements concerning the Company's pipeline monitoring, maintenance and spill response measures, as well as its compliance with federal regulations governing its pipeline operations. Among other things, Plains told investors and regulators that it was in compliance with regulations governing its pipeline operations, and that its Line 901 pipeline and operations off the coast of Santa Barbara, California were "state of the art" and therefore a spill was "extremely unlikely." The Complaint also seeks remedies under the Securities Act against Plains, Plains Holdings, certain of their senior officers and directors, and certain underwriters of the IPO, the November 2014 Offering and the February 2015 Offering for material misstatements and omissions contained in materials issued in connection with the Offerings.
On May 19, 2015, news reports disclosed that Line 901 had ruptured, causing a spill that impacted several miles of some of the most environmentally sensitive and protected coastline in North America. Although the Company was required to notify the National Response Center within 30 minutes of discovery of the spill, the agency was instead notified as a result of a 911 call to the local fire department. Further, regulators investigating the spill have reported that Line 901 and an adjacent pipeline were "extensively" corroded, and that prior inspections had shown a worsening of pipeline integrity.
Moreover, after the spill occurred, Plains executives misrepresented the extent and severity of the spill. In the days after the spill was disclosed, Company officials told investors that a "worst case" estimate showed that 2,400 barrels had been released. However, on August 5, 2015, the Company reported that the extent of the spill was in fact far greater than initially reported, and that the U.S. Department of Justice had initiated a criminal investigation into the spill.
In response to disclosures concerning the spill and the truth about the Company's operations, the price of Plains securities have declined by nearly 30%. Plains Holdings Class A Shares have similarly declined in value, falling $5.65 per share on August 5, 2015, or over 20%.
The deadline for seeking appointment as Lead Plaintiff in this matter is on October 16, 2015, or 60 days after the notice of the pendency of an action asserting substantially the same claims against Plains was first published. Specifically, on August 17, 2015, BLB&G published a notice in connection with a complaint that Jacksonville P&F filed against Plains in the Central District of California (the "California Action"), which triggered the 60-day deadline to seek Lead Plaintiff appointment. The California Action was subsequently dismissed. However, neither the dismissal of the California Action nor the filing of the Complaint in the Southern District of Texas alters the statutory deadline to seek Lead Plaintiff appointment.
If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court in the Southern District of Texas no later than October 16, 2015. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at (212) 554-1493 , or via e-mail at avi@blbglaw.com .
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com .
