Robbins LLP: SCANA Corporation (SCG) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against SCANA Corporation (NYSE: SCG). The complaint is brought on behalf of all purchasers of SCANA securities between January 19, 2016 and September 22, 2017, for alleged violations of the Securities Exchange Act of 1934 by SCANA’s officers and directors. SCANA, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina.
SCANA Accused Misrepresenting Status of Its Nuclear Project
According to the complaint, SCANA officials misled investors about the true status of the company’s multi-billion dollar nuclear construction project at V.C. Summer Nuclear Station (the “Nuclear Project”). Rather than disclose that the Nuclear Project was facing serious design, construction, and cost headwinds, SCANA officials created a false impression that the project was running smoothly within a reasonable budget and on schedule. SCANA officials also failed to mention that they had concerns about the financial viability of the lead contractor for the project, Westinghouse Electric Company, to continue construction of the project. On July 31, 2017, after a year and a half of touting the Nuclear Project’s successes, SCANA announced that it was abandoning construction of the Nuclear Project because of delays and cost overruns. On September 22, 2017, South Carolina Attorney General Alan Wilson requested that the State Law Enforcement Division launch a criminal investigation related to the Nuclear Project. Since news of the project’s cancelation became public, SCANA’s stock price plummeted, eventually closing at $55.22 per share on September 22, 2017.
SCANA Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact us via the form below and we will contact you directly.