On January 31, 2017, Pomerantz LLP was appointed Lead Counsel in a class action lawsuit against Pattern Energy Group, Inc. (“Pattern” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 16-cv-06560, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Pattern securities between May 9, 2016 and November 4, 2016, both dates inclusive (the “Class Period”), seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Pattern operates as an independent power company that owns and operates power projects in the United States, Canada, and Chile. As of October 18, 2016, the Company had a portfolio of 18 wind power projects with a total owned capacity of 2,644 MW. Pattern sells electricity and renewable energy credits primarily to local utilities and local liquid independent system organizations markets.
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, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Pattern’s operations were deficient with respect to various transaction, process level, and monitoring controls; (ii) as a result, Pattern lacked effective internal financial controls; and (iii) as a result of the foregoing, Pattern’s public statements were materially false and misleading at all relevant times.
On November 7, 2016, Pattern announced its financial and operating results for the quarter ended September 30, 2016 and disclosed a material weakness in internal controls over financial reporting. Pattern stated that its internal controls were “not effective as of September 30, 2016, due to the aggregation of internal control deficiencies related to the implementation, design, maintenance and operating effectiveness of various transaction, process level, and monitoring controls.”
On this news, Pattern’s share price fell $0.76, or 3.52%, to close at $20.86 on November 7, 2016.