- Motley Rice Files Securities Fraud Class Action Against SCANA
- October 25, 2017 | Authors: Marlon Emil Kimpson; William Stephen Norton; Joshua C. Littlejohn
- Law Firm: Motley Rice LLC - Mount Pleasant Office
Action alleges SCANA investors suffered financial losses related to abandoned nuclear project
Motley Rice LLC (“Motley Rice”), along with co-counsel, today announced that it has filed a class action on behalf of purchasers of SCANA Corporation (“SCANA”) (NYSE: SCG) common stock between January 19, 2016 and September 22, 2017 (the “Class Period”). This action, Norman vs. SCANA Corp., et al., No. 3:17-cv-02616-MBS, is filed in the U.S. District Court for the District of South Carolina. The complaint alleges SCANA and certain of its officers violated the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, contact plaintiff's counsel, Motley Rice at 1.800.768.4026 or via e-mail. A copy of the complaint may be viewed online. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
SCANA is a $7.3 billion energy-based holding company headquartered in Cayce, S.C. SCANA is principally engaged, through its subsidiaries, in regulated electric and natural gas utility operations in South Carolina, North Carolina and Georgia.
Over the past decade, SCANA has spent more than $9 billion on a project to build two nuclear reactors at the V.C. Summer Nuclear Station in South Carolina (the “Nuclear Project”). Despite this massive expenditure – financed by public investors as well as by raising customers’ electrical rates nine times – SCANA recently announced that it would abandon the Nuclear Project. Evidence then came to light that, for at least the prior 18 months, SCANA appeared to know of severe problems plaguing the Nuclear Project.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the construction of the Nuclear Project, assuring investors that costs spending was prudent and substantial progress was being made, even when cost overruns and other delays began to materialize. As a result of defendants’ false statements and/or omissions, SCANA’s common stock traded at artificially inflated prices during the Class Period.
On July 31, 2017, SCANA announced that it would abandon construction of the nuclear project because of cost overruns and delays. On August 4, 2017, the South Carolina Attorney General (“SC AG”) announced the opening of an investigation into SCANA’s abandonment of the Nuclear Project. On the same day, South Carolina state senators called for a special legislative session to investigate SCANA. On September 22, 2017, the SC AG publicly requested that the South Carolina State Law Enforcement Division launch a criminal investigation into the Nuclear Project.As a result of this news and other disclosures, SCANA’s stock price has declined $20.90 per share, or 27.5%, to close at $55.22 per share on September 22, 2017, from its closing price high of $76.12 per share on July 6, 2016.