RYE BROOK, NY / ACCESSWIRE / September 5, 2019 / Klafter Olsen & Lesser LLP, which has extensive experience in class action litigation against energy companies, has filed a class action complaint against Just Energy Group, Inc. (“Just Energy) (JE) in the U.S. District Court for the Southern District of New York (Civil Action No.: 1:19-cv-08236-JGK) on behalf of investors who purchased securities in Just Energy during the period from May 16, 2018 through and including August 19, 2019 (the “Class Period”). This Class Period takes into account the recent revelations by Just Energy in August 2019, and therefore includes investors who are not included in any other pending securities class action against the company.
The Complaint alleges that Just Energy and its Chief Executive and Chief Financial Officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by misrepresenting the adequacy of Just Energy’s internal financial controls and the true value of the company’s receivables from customers in its Texas residential and U.K markets. Despite repeatedly representing that Just Energy’s internal financial controls were adequate, Just Energy, through a series of revelations between July 23, 2019 and August 19, 2019, admitted to a material weakness in the design and operation of its internal controls and procedures, and that its allowance for doubtful accounts for its fiscal year ended March 31, 2019 was understated by $111.2 million consisting of $53.7 million for doubtful accounts in its Texas residential market and $57.5 million related to operational and collection issues in its United Kingdom (U.K.) market. As a result, the company further announced that it was restating its financial results for its third quarter and fiscal year 2019, and for the company’s first quarter of its fiscal year 2020 and that its CEO would be leaving the company. This series of revelations caused the price of Just Energy common stock to drop precipitously from $4.38 per share to $1.18 per share.
If you purchased Just Energy securities during the Class Period (May 16, 2018 - August 19, 2019), you may, no later than September 30, 2019, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained losses on your purchases of Just Energy securities during the Class Period, please contact Klafter Olsen & Lesser LLP at www.klafterolsen.com or call us at 914/934-9200 x 301 for a more thorough explanation of the Lead Plaintiff selection process and the claims asserted against Just Energy.
Klafter Olsen & Lesser LLP has offices in New York and Washington D.C. The founding partners have over fifty years combined experience representing plaintiffs in securities class action litigation and also has extensive experience in class action litigation against energy companies such as Just Energy. Please visit our website for more information about the Firm.
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SOURCE: Klafter Olsen & Lesser LLP
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