A federal judge in USDC Georgia (Northern) recently approved a claim deadline date for investors to participate in a previously agreed-upon $87.5 million settlement with The Southern Company. Shareholders must file claims prior to February 18, 2021 with Gilardi & Co., the court appointed claims administrator.
The initial complaint, filed on January 17, 2017, detailed allegations that the utility company failed to build a coal gasification (or “clean coal”) plant in Mississippi. The company received a funding package of close to $1 billion in U.S. Department of Energy grants and Internal Revenue Service tax credits, provided construction of the plant was completed by May 2014.
Originally slated to cost the company, and its subsidiary Mississippi Power, approximately $2.4 billion – however unexpected delays, as well as construction and related expenses grew to a $7.5 billion money pit. In October 2013, The Southern Company finally acknowledged their delays and cost overruns, which led to a significant stock drop. In fact, the company’s valuation decreased by $1.3 billion.
Investors in the class action were represented by co-lead plaintiff’s Monroe County Employees’ Retirement System and Roofers Local No. 149 Pension Fund. Details of the case are as follows:
|The Southern Company|
|Class Period||April 25, 2012 – October 30, 2013|
|Eligibility Definition||All purchasers of the common stock during the Class Period|
|Eligible Security ID’s||2829601; 842587107; B1C5HK8; BYZHFW0; BK9R302; US8425871071|
|Claim Deadline Date||February 18, 2021|
Interestingly, this is the third largest settlement that occurred within the USDC Georgia (Northern)… following the $149 million Equifax, Inc. settlement from June 2020 and $137.5 million Coca-Cola Company settlement from October 2008.
As always, ISS Securities Class Action Services will keep its clients up-to-date on any further case developments.
By Jeff Lubitz, Executive Director, ISS Securities Class Action Services