RADNOR, PA / ACCESSWIRE / April 28, 2016 / The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors that a shareholder class action lawsuit has been filed against Teekay Corporation (NYSE:TK) ("Teekay" or the "Company") on behalf of purchasers of the Company's securities between June 30, 2015 and December 17, 2015, inclusive (the "Class Period").
FINAL REMINDER: Investors who purchased Teekay common stock during the Class Period may, no later than May 2, 2016, petition the Court to be appointed as a lead plaintiff representative of the class. For additional information please visit https://www.ktmc.com/new-cases/teekay-corporation#join.
Teekay shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus Kaskela, Esq.) at (888) 299 - 7706 or at info@ktmc.com.
As detailed in the complaint, on June 30, 2015, the defendants increased Teekay's quarterly dividend by 75% to $0.55 per share, and assured investors that the Company would maintain its high dividend. Thereafter, Teekay and certain of its executive officers issued a series of false and misleading statements which continued to represent that the Company remained on track to continue to pay out high dividends, and that Teekay would increase its dividend by 15-20% in the near future.
On December 16, 2015, Teekay shocked investors when it announced that it was slashing its dividend by 90% – from $0.55 per share to just $0.055 per share. On this news, the price of Teekay's common stock declined $10.22 per share, or over 58 percent, to close on December 17, 2015 at $7.27 per share, on heavy trading volume.
The complaint alleges that Teekay and certain of its executive officers made materially false and misleading statements to investors during the Class Period which misrepresented and/or omitted to disclose, among other things, 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; and (3) the cash flows from the Company's master MLPs could not possibly sustain such high dividends. As a result of the foregoing, Teekay misled the market about the strength of its business and financial condition.
Teekay shareholders who purchased their securities during the Class Period (June 30, 2015 - December 17, 2015) may, no later than May 2, 2016, petition the Court to be appointed as a lead plaintiff representative of the class.
Members of the purported class may petition to be appointed as a lead plaintiff the Court through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. A class member's ability to share in any recovery is not affected by the decision of whether or not to petition the Court to be appointed as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
SOURCE: Kessler Topaz Meltzer & Check, LLP
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