NEW YORK, Aug. 19, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased Plains All American Pipeline, L.P. (“Plains All American”) (NYSE:PAA) Common Units from February 27, 2013 through August 4, 2015, inclusive and Plains GP Holdings, L.P. (“Plains GP Holdings”) (NYSE:PAGP) Class A Shares from October 16, 2013 through August 4, 2015, inclusive (the “Class Period”).
The Complaint alleges Plains All American and Plains GP Holdings (collectively, “Plains”) and their executives violated federal securities laws by failing to disclose the lack of integrity concerning Plains All American and Plains GP Holdings’ 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.”
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, Plains All American and Plains GP Holdings announced 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.
Consequently, Plains All American share price fell 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 Holdings’ Class A shares’ price fell 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 wish to serve as lead plaintiff, you must move the Court no later than October 16, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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