Denver-based The Shuman Law Firm, which represents investors throughout the nation, concentrating its practice in stockholder litigation, is investigating potential claims against certain officers and directors of Plains All American Pipeline LP.
Plain All American Pipeline is a Houston-based company that engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids (NGL), natural gas, and refined products in the United States and Canada.
The firm’s investigation concerns whether certain current and/or former senior officers and directors of Plains All American breached their fiduciary duties to the company by allegedly causing the company to fail to disclose the lack of integrity concerning the company’s pipeline operations as well as their lack of compliance with federal safety regulations.
A class action lawsuit filed against the company and certain senior executives alleges that senior Plains All American executives characterized Plains All American’s safety compliance efforts for the Line 901 pipeline off the coast of California as “state of the art” with an oil spill being qualified as “extremely unlikely.”
Despite these assurances, on May 19, 2015, Line 901 ruptured but was dismissed to be a small spill according to Plains All American executives, estimating 2,400 barrels being released into the federally protected and environmentally sensitive Pacific coastline. However, on August 5, 2015, the company announced that the extent of the spill was much greater than initially estimated, and that the U.S. Department of Justice had initiated a criminal investigation into the spill.
Following the August 5, 2015, disclosure, Plains All American’s stock price immediately fell more than 27 percent from $49.59 per share on May 19, 2015 (before the spill) to a closing price of $35.95 per share on August 5, 2015. The company’s stock price has not rebounded and currently trades for less than $20 per share.
If you currently own Plains All American common stock and are interested in discussing your rights as a shareholder, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn at 866-569-4531 or email Shuman at email@example.com or email Glenn at firstname.lastname@example.org.