SCANA Corporation (NYSE: SCG)
A class action has been commenced on behalf of purchasers of SCANA Corporation (NYSE: SCG) common stock between January 19, 2016 and September 22, 2017 (the “Class Period”).
The complaint charges SCANA and certain of its officers with violations of the Securities Exchange Act of 1934. SCANA is a $7.3 billion energy-based holding company headquartered in Cayce, South Carolina. 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 have known of the 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 spending on project costs was prudent and that 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 securities traded at artificially inflated prices during the Class Period, with its stock reaching highs of more than $75 per share.
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.
If you are a current shareholder and purchased stock between January 19, 2016 and September 22, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
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