Robbins Arroyo LLP: Pattern Energy Group Inc. (PEGI) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Pattern Energy Group Inc. (NASDAQGS: PEGI) in the U.S. District Court for the Northern District of California. The complaint is brought on behalf of all purchasers of Pattern securities between May 9, 2016 and November 4, 2016, for alleged violations of the Securities Exchange Act of 1934 by Pattern’s officers and directors. Pattern operates as an independent power company that owns and operates power projects in the United States, Canada, and Chile.
Pattern Accused of Implementing Deficient Controls over Financial Reporting
According to the complaint, Pattern submitted several filings with the U.S. Securities and Exchange Commission certifying that the financial information was accurate and disclosed any material changes to the company’s internal control over financial reporting. However, the complaint alleges that Pattern officials failed to disclose that Pattern’s operations were deficient, and as a result, Pattern lacked effective internal financial controls.
On November 7, 2016, Pattern disclosed a material weakness in internal controls over financial reporting, citing deficiencies related to the implementation, design, maintenance, and operating effectiveness of various transaction, process level, and monitoring controls. Pattern further noted that frequent changes in organizational structure were not adequately supported by elements of the company’s internal control over financial reporting. On this news, Pattern stock fell $0.76 per share, or 3.52%, to close at $20.86 per share on November 7, 2016.
Pattern Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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