THIRD COAST MIDSTREAM ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Third Coast Midstream f/k/a American Midstream Partners, LP and Encourages Investors to Contact the Firm
NEW YORK--(BUSINESS WIRE)--Oct 29, 2019--
Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of behalf of all former owners of American Midstream stock who sold their stock, and were damaged thereby. Investors have until December 9, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
American Midstream is a growth-oriented master limited partnership formed to own, operate, develop, and acquire a diversified portfolio of midstream energy assets. At all relevant times, American Midstream’s general partner was American Midstream GP, LLC (the “General Partner”). The General Partner was solely responsible for supporting and conducting the business operations of American Midstream.
The complaint, filed on October 10, 2019, alleges that ArcLight Capital Partners, LLC (“ArcLight”) was the Company’s majority stockholder and had control over the General Partner. Therefore, ArcLight ensured that the majority of American Midstream’s Board of Directors were all affiliated with ArcLight, and had the ability to control the Company’s quarterly distribution.
On July 27, 2018, American Midstream declared a 75 percent reduction in the Company’s quarterly common stock distribution. As a result of this reduction, American Midstream’s stock price declined over 42 percent, falling precipitously from $11.55 to $6.60 on July 27, 2018.
Then, on December 31, 2018, American Midstream reported that because of an amendment to its credit facility agreement, it did not expect to make any distributions to its stock holders in the upcoming fourth quarter of 2018, and would continue to withhold said distributions until its consolidated total leverage ratio was reduced. On this news, American Midstream’s stock declined $1.30, or 30 percent, closing at a price of $3.03 per share on December 31, 2018.
On March 18, 2019, American Midstream publicly disclosed it had entered into a merger agreement with a subsidiary of ArcLight pursuant to which American Midstream stockholders would receive $4.50 per share. On July 23, 2019, American Midstream announced the closing of the merger.
Therefore, as a result of the distribution cuts put in place by virtue of ArcLight’s control over the Company, American Midstream minority stockholders received approximately 60 percent less consideration for their shares than the common stock price immediately prior to the distribution cut on July 27, 2018.
If you were a former owner of American Midstream stock and sold your shares at a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191029006157/en/
CONTACT: Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Bragar Eagel & Squire, P.C.
Copyright Business Wire 2019.
PUB: 10/29/2019 07:55 PM/DISC: 10/29/2019 07:55 PM