In re PG&E Corporation Securities Litigation

Updated: April 22, 2020
Status: Ongoing Case

Labaton Sucharow is court-appointed lead counsel in a securities class action lawsuit against PG&E Corp., Pacific Gas and Electric Company (the Utility), current and former officers and directors, and underwriters related to allegedly false and misleading statements and omissions about safety and compliance leading up to the wildfires that devastated Northern California in October 2017 (the “North Bay Fires”) and November 2018 (the “Camp Fire”). 

The case asserts class action claims on behalf of stock, options, and bond purchasers, including violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, as well as Sections 11 and 15 of the Securities Act of 1933.  It is pending in federal district court in San Francisco before Judge Edward J. Davila (the “Action”). 

On May 28, 2019, the plaintiffs filed their Third Amended Complaint alleging that Defendants made a series of false and misleading statements from April 29, 2015, through November 15, 2018, (the Class Period) to misrepresent safety practices, including active concealment of numerous and widespread violations of California safety regulations.  The Action alleges that these statements had the effect of inflating prices for PG&E’s common stock/options and the Utility’s bonds, which declined precipitously in value as the natural and probable consequences of that concealment played out.

The Action is In re PG&E Corporation Securities Litigation, No. 18-cv-03509 (N.D. Cal.). Labaton Sucharow represents lead plaintiff the Public Employees Retirement Association of New Mexico.

On January 29, 2019, the Pacific Gas & Electric Company (the Utility) and PG&E Corp. (the publicly traded holding company) filed jointly for bankruptcy protection, which has had the effect of staying the Action against the Debtors, but not against the other Defendants (the officers, directors, and underwriters).  The jointly administered bankruptcy actions are before Bankruptcy Judge Dennis Montali (Case Nos. 19-br-30088 and 19-br-30089, Bankr. N.D. Cal.).  

April 16, 2020 BAR DATE — The Bankruptcy Court previously ordered that any investor with a securities claim for damages or rescission against the Debtors must file claim forms in the bankruptcy proceeding on or before April 16, 2020. Claim forms had to be received no later than that date, or claims against the Debtors would forever be barred. So far, this deadline has not been extended due to COVID-19 or otherwise. However, claimants are continuing to submit claims. It will be up to the Bankruptcy Court to decide whether or not to allow late claims. Downloadable copies of the Claim Form and the Extended Securities Bar Date Notice may be accessed using these links.

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