According to the law firm press release, the complaint charges that Atlantic Power ("AT") and its President and Chief Executive Officer violated federal securities laws by making false and misleading statements regarding AT's common stock dividend in 2012 and 2013. Specifically, the sustainability of AT's stock dividend was regarded by the Company as one of its corporate objectives. On numerous occasions during the Class Period, defendants stated they were studying cash flows
and the sustainability of a dividend. Then, without any warning, on February 28, 2013 in a press release the company stated that in order to "target a lower, more sustainable payout ratio that balances yield and growth," the Board, with
management's recommendation was cutting AT's common stock dividend by more than 50% commencing with the March 2013 dividend, thus paying an annual dividend of only Cdn $0.40 per share, down from Cdn $0.90 per share. The market reacted immediately and the price of AT common stock fell from an opening price of $10.25 on February 28, 2012 to a closing price of $7.12 on March 1, 2013, and a further drop on March 4 to a $5.91 closing price, on trading volume of over 9 million shares.
According to the July 31, 2013 docket entry, the Court granted the Motions to Consolidate Cases.
On March 31, 2014, the Court issued an Order appointing lead plaintiffs and lead counsel. Lead plaintiffs filed an amended and consolidated complaint on June 6.
On March 13, 2015, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs' Motion to Amend the complaint was denied.