This securities fraud class action alleges that Plains All American Pipeline (Plains) issued false and misleading statements concerning its pipeline monitoring, maintenance and spill response measures, as well as its compliance with federal regulations governing its pipeline operations.
Plains, a publicly traded master limited partnership, is one of the largest crude oil and other liquid energy pipeline operators in the United States.
What investors are part of this class action ? The class period is currently defined as all persons who purchased Plains All American Pipeline common stock between February 27, 2013 and August 4, 2015, inclusive (the “Class Period”). Plains All American Pipeline common stock trades under the symbol “PAA, PAGP”.
Procedural Status. The lawsuit was filed on August 20, 2015 and is captioned City of Birmingham Firemens and Policemens Supplemental Pension System v. Plains All American Pipeline, L.P. et al. It was filed in the Texas Southern District Court. Its civil docket number is 4:15cv02404. The lead plaintiff deadline is October 16, 2015.
The complaint alleges Plains and its senior executives misled investors throughout the Class Period by concealing pervasive and systemic oil pipeline monitoring and maintenance failures, inadequate spill response measures, repeated failures to comply with federal regulations and other misconduct that led to the May 19, 2015 oil spill in Santa Barbara, described as the largest oil spill in California in 25 years; including allegations that Plains represented that:
- pipeline maintenance was its “primary operational emphasis,” and that it had undertaken significant measures to prevent oil spills, ensure the integrity of its pipelines, and minimize the damage any such incidents may cause;
- it had “implemented programs intended to maintain the integrity of our assets, with a focus on risk reduction through testing, enhanced corrosion control, leak detection, and damage prevention;” and
- its pipelines were “in substantial compliance” with federal regulations governing the design, installation, testing, construction, operation, replacement and management of pipeline, but also that the Company’s “integrity management program” included measures that went well beyond those legal requirements.
On May 19, 2015, Plains Line 901 ruptured, triggering a spill that impacted several miles of coastline.
Following the disclosure of the spill and subsequent investigation by the Pipeline and Hazardous Materials Safety Administration, Plains common units have lost over nearly one-third of their value in response to disclosures revealing the true extent of the spill.Article Type: Lawsuit