Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Teekay Corporation
April 07 2016 - 1:14PM
Cohen Milstein Sellers & Toll PLLC is conducting an
investigation to determine whether Teekay Corporation (“Teekay” or
the “Company”) and certain of its officers and directors made false
and misleading statements and/or omissions in violation of Sections
10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S.
District Court for the District of Connecticut by another law firm
on behalf of purchasers of the common stock of Teekay Corporation
(NYSE:TK) between June 30, 2015 and December 17, 2015 inclusive
(the “Class Period”).
Teekay Corporation operates through its
ownership of the general partners of, and a portion of the
outstanding limited partner interests in, Teekay LNG Partners L.P.
(“Teekay LNG”) and Teekay Offshore Partners L.P. (“Teekay
Offshore”). Teekay gets the majority of its cash flow from
distributions paid by these master limited partnerships
(“MLPs”).
The Class Period begins on June 30, 2015 with
Teekay’s announcement that it was implementing a new dividend
policy with an initial increase of approximately 75%. The Company
added that future increases would be linked to the dividend cash
flows of its “daughter” companies and were targeted to be in the
range of 15% to 25% per year.
The complaint alleges that Teekay and certain of
its officers and directors made misleading statements and/or failed
to disclose that: (1) the Company’s repeated assurances that it
would maintain a quarterly dividend of at least $0.55 per share
were baseless; (2) the Company knew, based on then-present facts,
that it could not support future dividend payments in excess of
$0.55 per share; (3) the cash flows from the Company’s MLPs (Teekay
LNG and Teekay Offshore) could not possibly sustain such high
dividends; and (4) Teekay misled the market about the strength of
its business and financial condition.
The claims in this case followed the Company’s
unexpected announcement that it was cutting its quarterly dividend
by 90%. The price of Teekay shares fell from $17.49 to $7.27 on
December 17, 2015.
If you are a Teekay shareholder and would like
to discuss your right to recover for your economic loss, you may,
without any cost or obligation, call Cohen Milstein’s Managing
Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or
email him at stoll@cohenmilstein.com. If you wish to serve as lead
plaintiff, you must move the Court no later than May 2, 2016 to
request appointment. Any member of the proposed class may retain
Cohen Milstein or other attorneys to serve as your counsel in this
action, or you may do nothing and remain an absent class
member.
Cohen Milstein has significant experience in
prosecuting investor class actions and actions involving securities
fraud, and is active in major litigation pending in federal and
state courts throughout the nation. Cohen Milstein has taken a lead
role in numerous important cases on behalf of defrauded investors,
and has been responsible for a number of outstanding recoveries
which, in the aggregate, total over two billion dollars. Prior
results do not guarantee a similar outcome. For more information
visit www.cohenmilstein.com.
Attorney Advertising
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Robin Bleiweis
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500 East
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; rbleiweis@cohenmilstein.com
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