Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Dynagas LNG Partners (NYSE:DLNG) in connection to alleged securities law violations by AAC. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Dynagas LNG Partners between February 16, 2018 and March 21, 2019.
The class action complaint specifically alleges that during the period in question, AAC provided false and/or misleading material information and/or failed to disclose adverse material information to the public, chiefly: that the company had entered into unfavorable contracts that gave it lower rates for spot charters, causing the company to bring in substantially lower revenue than prior contracts; that fixed revenue brought in from long-term contracts would result in an unsustainable distribution rate; and that consequently the company’s statements to the public during the relevant period were false and misleading. The complaint alleges more specifically that the company had used a significant quarterly distribution to lure investors since its initial public offering in 2013; that is, until the company allegedly began misleading investors about its new distribution rate at the beginning of 2018, when the company’s CEO assured investors in a February conference call that the distribution rate would remain consistent over the long term. At the time, according to the complaint, the company was aware that its cash flow would decline in that year and the following years, ultimately disclosing in November 2018 that its vessels had executed extended charter contracts with “lower rates compared with the previous charter contracts.” Following the disclosure of this news, the company’s stock declined in value by about 13.7%, or $1.07/share. When the company disclosed on January 25, 2019 that it would be reducing its quarterly distribution to investors by 75% so as to “retain more of the cash generated from the Partnership’s long term contracts to maintain a steady cash balance,” the company’s stock declined 27.6%,, or $1.11/share, closing at $2.91/share on January 26, 2019. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Dynagas Ltd. is a company involved in the maritime transportation of liquefied natural gas. Founded in 2004, the company provides “in-house ship management services in order to provide charters and stakeholders with the best performance and reliability.” Dynagas LNG Partners trades on the New York Stock Exchange under the symbol DLNG.
A class action lawsuit has already been filed in connection with Dynagas LNG Partners. If you wish to serve as lead plaintiff in the AAC lawsuit, you must move the Court no later than July 15, 2019. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.