Labaton Sucharow has been appointed lead counsel in a securities class action lawsuit against PG&E alleging that the utility company made material misrepresentations about the maintenance of its electricity transmission and distribution networks and its compliance with state regulations and requirements. The case is related to a series of wildfires that caused widespread devastation throughout Northern California in October 2017. Investigations by the California Department of Forestry and Fire Protection (“Cal Fire”) determined that several of these fires were started when trees fell onto PG&E powerlines. The investigations also found evidence that PG&E, in many cases, failed to remove trees that were in proximity to their lines in violation of California regulations.
The findings of these investigations highlighted the numerous material misrepresentations and omissions made by PG&E officials regarding the maintenance of its systems and its commitment to safety dating back to April 2015. Upon news of Cal Fire’s findings and as PG&E’s potential liabilities have increased, the company’s share price has dropped significantly, from a close of $69.15 per share on October 11, 2017 to a close of $39.76 per share on June 11, 2018.
Labaton Sucharow represents the Public Employees Retirement Association of New Mexico in the action, captioned In re PG&E Corporation Securities Litigation, No. 3:18-cv-03509-rv (N.D. Cal.). Tom Dubbs is leading the Firm’s litigation team.