WASHINGTON, April 07, 2016 (GLOBE NEWSWIRE) -- 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 firstname.lastname@example.org. 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.
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: email@example.com; firstname.lastname@example.org
Source:Cohen Milstein Sellers & Toll PLLC