Dynagas LNG Partners is facing a class action lawsuit and multiple investigations on behalf of all investors that purchased DLNG securities between 16 February 2018 and 21 March 2019.
Bragar Eagel & Squire, P.C., and Entwistle & Cappucci LLP, have both independently announced that a class action lawsuit has been filed on behalf of all investors that purchased Dynagas LNG Partners LP securities between 16 February 2018 and 21 March 2019.
The case was filed in the United States District Court for the Southern District of New York, Case No.1:19-cv-04512, against Dynagas, certain associated entities and certain of the company’s senior executives.
The class action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that, during the Class Period, the Defendants made materially false and misleading statements and omitted material adverse facts to conceal the unfavorable terms of the Company’s long-term contracts on its liquid natural gas ships, Arctic Aurora and Ob River, and its resulting inability to sustain its quarterly distributions. As a result of the Defendants’ false and misleading statements and omissions, Dynagas securities traded at artificially inflated prices during the Class Period. Such inflation was removed when it was revealed that the Arctic Aurora and the Ob River were commencing employment under new extended charter contracts which were at lower rates compared to the previous charter contracts, thereby undermining the company’s ability to make future distributions. The complaint seeks an award of damages, and interest thereon, to plaintiff and other class members.
Investors have until 16 July 2019 to apply to the court to be appointed as lead plaintiff in the lawsuit.
Investigations into possible violations of securities laws
Several law firms have begun investigations into claims regarding possible violations of securities laws on behalf of either Dynagas’ shareholders or Dynagas. Those investigating on behalf of the shareholders include: Levi & Korsinsky, LLP; Rosen Law Firm; Schall Law Firm; Howard G. Smith; and Glancy Prongay & Murray, LLP.
The investigation focuses on whether the company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. The following events are at the core of the investigations:
- On 15 November 2018, Dynagas issued a press release disclosing that two of its vessels entered extended charter contracts at “lower rates compared with the previous charter contracts.” On this news, shares of Dynagas fell US$1.07 or over 13.7% to close at US$6.69 per share on 16 November 2018.
- On 25 January 2019, Dynagas announced that it would be cutting its quarterly distribution by 75% as it was “necessary in order to retain more of the cash generated from the partnership’s long-term contracts to maintain a steady cash balance.” On this news, shares of Dynagas fell US$1.11 or over 27.6% to close at US$2.91 per share on 28 January 2019.
The above-mentioned firms are all inviting contact from anyone that purchased Dynagas securities, has information relating to the claims or lawsuit, or would like more information.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20052019/class-action-lawsuit-filed-against-dynagas/
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