NEW YORK, Oct. 17, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in American Midstream Partners, LP ("American Midstream" or the "Company")(NYSE:AMID) of the December 9, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you sold American Midstream common stock units between July 27, 2018 and July 23, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/AMID. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who sold American Midstream common stock between July 27, 2018 and July 23, 2019 (the "Class Period"). The case, Paul C. Kraft and Linda E. Kraft JTWROS v. Third Coast Midstream, LLC f/k/a American Midstream Partners, LP et al., No. 19-cv-09398 was filed on October 10, 2019, and has been assigned to Judge Valerie E. Caproni.
The complaint alleges that, during the Class Period, the Company and certain executives engaged in a scheme to deceive the market and led a course of conduct that artificially deflated the price of American Midstream’s common units. This course of conduct misled the Class members and caused them, in reliance on the misrepresentations and on the market price of American Midstream’s common units during the Class Period, to sell their common units at a depressed price. As a result of their sale of American Midstream common units during the Class Period, Plaintiff and other members of the Class suffered economic loss, i.e., damages, under the federal securities laws.
On July 27, 2018, American Midstream announced a revised capital allocation strategy. As part of this strategy, American Midstream for the first time since it became publicly traded, announced that it was drastically slashing its quarterly distribution by 75 percent, to $0.1031, or $0.4125 annually. This news was material to investors, as American Midstream’s often-touted consecutive quarterly distribution had represented a reliable return on investment for the previous twenty-seven quarters.
On this news, American Midstream's share price fell from $4.33 per share on December 28, 2018 to a closing price of $3.03 on December 31, 2018: a $1.30 or a 30.02% drop.
Then, on December 31, 2018, American Midstream reported that because of an amendment to its credit facility agreement, it did not expect to make any distributions to its unit holders in the upcoming fourth quarter of 2018, and would continue to withhold said distributions until its consolidated total leverage ratio was reduced.
On this news, American Midstream's share price fell from $11.55 per share on July 26, 2018 to a closing price of $6.60 on July 27, 2018: a $4.95 or a 42.86% drop.
On March 18, 2019, American Midstream publicly disclosed it had entered into a merger agreement with a subsidiary of ArcLight pursuant to which American Midstream unitholders would receive $4.50 per unit. On July 23, 2019, American Midstream announced the closing of the merger. Therefore, as a result of the distribution cuts put in place by virtue of ArcLight’s control over the Company, American Midstream minority unitholders received approximately 60 percent less consideration for their units than the common unit price immediately prior to the distribution cut on July 27, 2018.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding American Midstream's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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