NEW YORK, Sept. 04, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Portland General Electric Company (“Portland Energy” or the “Company”) (NYSE: POR) on behalf of those who purchased or acquired the securities of Portland Energy between April 24, 2020 and August 24, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Portland Energy investors under the federal securities laws.
On August 24, 2020, after the market closed, POR announced that it had incurred losses of $127 million as of August 24, 2020. POR further stated that “personnel entered into a number of energy trades during 2020, with increasing volume accumulating late in the second quarter and into the third quarter, resulting in significant exposure to the Company.” In addition, the Company announced that it had formed a Special Committee “to review the energy trading that led to the losses and the Company’s procedures and controls related to the trading.”
On this news, the Company’s share price fell $3.51, or nearly 8%, to close at $38.45 per share on August 24, 2020, thereby injuring investors.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that Defendants failed to disclose to investors: (1) that POR lacked effective internal controls over its energy trading practices; (2) that POR personnel had entered energy trades during 2020, with increasing volume accumulating late in the second quarter and into the third quarter, that created significant negative financial exposure for POR; (3) that, as a result, the Company was reasonably likely to incur significant losses; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Investors who purchased or otherwise acquired shares of Portland Energy during the Class Period should contact the Firm prior to the November 2, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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