SOURCE: Bernstein Litowitz Berger & Grossmann LLP

August 17, 2015 12:18 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against Plains All American Pipeline, L.P., Plains GP Holdings, L.P. and Certain of Their Senior Executives and Other Defendants

NEW YORK, NY--(Marketwired - Aug 17, 2015) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action on behalf of the Jacksonville Police and Fire Pension Fund alleging claims under Section 10(b) and 20(a) under the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in the Common Units of Plains All American Pipeline, L.P. ("Plains" or the "Company") (NYSE: PAA) between February 27, 2013 and August 4, 2015, inclusive, and the Class A Shares of Plains GP Holdings, L.P. ("Plains Holdings") (NYSE: PAGP) between October 16, 2013 and August 4, 2015, inclusive (the "Class Period"). The Complaint also alleges claims under Sections 11, 12 and 15 of the Securities Act of 1933 (the "Securities Act") on behalf of all persons who purchased or otherwise acquired Plains Holdings Class A Shares pursuant and/or traceable to Plains Holdings' initial public offering conducted on or about October 16, 2013 (the "IPO"), as well as a registered public offering of Plains Holdings Class A Shares conducted on or about November 10, 2014 (the "November 2014 Offering" and, collectively with the IPO, the "Offerings"). The action is captioned Jacksonville Police and Fire Pension Fund v. Plains All American Pipeline, L.P., No. 2:15-cv-06210 (C.D. Cal.). 

The Complaint alleges that during the Class Period, Plains, Plains Holdings and certain of its senior executives violated provisions of the Exchange Act by issuing false and misleading statements concerning the Company's pipeline monitoring, maintenance and spill response measures, as well as its compliance with federal regulations governing its pipeline operations. Among other things, Plains told investors and regulators that it was in compliance with regulations governing its pipeline operations, and that its Line 901 pipeline and operations off the coast of Santa Barbara, California were "state of the art" and therefore a spill was "extremely unlikely." The Complaint also seeks remedies under the Securities Act against Plains Holdings, certain of its senior officers and directors, and certain underwriters of the IPO and November 2014 Offering for material misstatements and omissions contained in materials issued in connection with the Offerings. 

On May 19, 2015, news reports disclosed that Line 901 had ruptured, causing a spill that impacted several miles of some of the most environmentally sensitive and protected coastline in North America. Although the Company was required to notify the National Response Center within 30 minutes of discovery of the spill, the agency was instead notified as a result of a 911 call to the local fire department. Further, regulators investigating the spill have reported that Line 901 and an adjacent pipeline were "extensively" corroded, and that prior inspections had shown a worsening of pipeline integrity. 

Moreover, after the spill occurred, Plains executives misrepresented the extent and severity of the spill. In the days after the spill was disclosed, Company officials told investors that a "worst case" estimate showed that 2,400 barrels had been released. However, on August 5, 2015, the Company reported that the extent of the spill was in fact far greater than initially reported, and that the U.S. Department of Justice had initiated a criminal investigation into the spill. 

In response to disclosures concerning the spill and the truth about the Company's operations, the price of Plains securities have declined by nearly 30%. Plains Holdings Class A Shares have similarly declined in value, falling $5.65 per share on August 5, 2015, or over 20%. 

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than 60 days from today. Accordingly, the deadline for filing a motion for appointment as Lead Plaintiff is October 16, 2015. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at (212) 554-1493, or via e-mail at avi@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Avi Josefson
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    New York, New York 10019
    Telephone: (212) 554-1493