PG&E Corporation (PCG) Made False and Misleading Statements Regarding its Wildfire Safety Practices
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired PG&E Corporation (NYSE: PCG) securities between March 22, 2018 and November 15, 2018, for violations of the Securities Exchange Act of 1934. PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States.
According to the complaint, PG&E was responsible for the North Bay Fires that devastated Northern California in October 2017. As such, PG&E began representing to investors that it was prioritizing safety in maintaining its power lines and preventing wildfires. Beginning on March 22, 2018, defendants issued a series of statements that misled investors about PG&E’s wildfire safety practices, including representations that the Company was in full legal compliance and continuing to invest in safety, notwithstanding the Company’s numerous and widespread violations of safety regulations and inadequate safety practices.
These statements were materially false and misleading because PG&E had not meaningfully improved its safety practices – as revealed by the devastating Camp Fire that began on November 8, 2018. As news of PG&E’s role in the Camp Fire became known, its stock price tumbled, closing down approximately 16.5% on November 9, 2018, and continued to fall over the next several days. Finally, on November 15, 2018, PG&E’s share price fell $7.85, or over 30%, to close at $17.74.
In early 2019, the Company was forced to take a $10.5 billion charge related to the Camp Fire. Later, Cal Fire confirmed that PG&E’s electrical equipment caused the Camp Fire, and PG&E itself pled guilty to 84 counts of manslaughter as a result of the Camp Fire. “Our equipment started that fire,” PG&E CEO and President Bill Johnson said at a court hearing, referencing the Camp Fire.
What Now: Similarly situated shareholders may be eligible to participate in the class action against PG&E. Shareholders who want to act as lead plaintiff for the class should contact the firm. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.