According to law firm press release, Macquarie Infrastructure Corporation ("Macquarie") owns and operates a portfolio of infrastructure and infrastructure-like businesses. Macquarie's most important business segment is its International-Matex Tank Terminals ("IMTT") business, which provides bulk liquid storage and handling services at marine terminals in the United States and Canada.
The Complaint alleges that, during the Class Period, Defendants violated provisions of the Exchange Act by issuing false and misleading press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), and statements during investor and analyst conference calls.
Specifically, the Complaint alleges that throughout the Class Period, Defendants misrepresented and concealed material risks facing the IMTT business; Defendants repeatedly emphasized IMTT's "very strong" performance and "high" utilization rates; Defendants touted Macquarie's "good visibility" into "macroeconomic factors influencing supply and demand" as evidence of IMTT's stability, but concealed IMTT's dependence on heavy residual oil, the use of which had been in decline for years. Rather than disclose the material risk to the Company presented by the decline in heavy residual oil products, Defendants downplayed Macquarie's exposure to fluctuations in the use of petroleum products. Defendants also provided false assurances regarding the sustainability of Macquarie's dividend.
Defendants' misrepresentations and material omissions rendered investors unable to appreciate or assess the material risks to IMTT of shifting commodity demands, and the resultant impact to the Company's dividend. When the truth regarding IMTT's dependence on heavy residual fuel oils was finally revealed on February 21, 2018 and Macquarie announced that it would be slashing its dividend by 31%, the price of the Company's stock declined significantly.
On January 30, 2019, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on February 20, 2019. On April 4, the Court issued an Order to clarify the Complaint.