Two US law firms file class action lawsuit against Aegean

Kaskela Law and Bernstein Liebhard start legal proceedings; nine other law firms launch investigation.



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Updated on 06 Jun 2018 08:19 GMT

Two US law firms, Kaskela Law LLC and Bernstein Liebhard LLP, have each filed a securities class action lawsuit against Aegean Marine Petroleum Network Inc following the recent revelation that the bunker firm expects to write off $200 million of accounts receivable owed and could initiate claims against parties involved.

Both lawsuits have been filed on behalf of those who purchased or acquired shares of Aegean between April 28, 2016 and June 4, 2018, defined as the 'class period'.

Kaskela Law's complaint alleges that "Aegean and certain of its senior executive officers made false and misleading statements and/or failed to disclose to investors that: (i) Aegean had improperly accounted for an approximate $200 million of accounts receivable as of December 31, 2017; and (ii) Aegean failed to maintain effective internal control over financial reporting."

The complaint further alleges that, as a result, investors purchased Aegean's securities at artificially inflated prices during the class period and sustained significant investment losses following the company's disclosures on June 4.

Similarly, Bernstein Liebhard claims: "[The] defendants made false and/or misleading statements and/or failed to disclose that: (1) Aegean had improperly accounted for approximately $200 million of accounts receivable as of December 31, 2017; (2) Aegean failed to maintain effective internal control over financial reporting; and (3) as a result of the foregoing, Defendants' statements about Aegean's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis."

Nine other law firms launch investigation

Meanwhile, a long list of other US law firms have informed Aegean investors that they have launched an investigation to ascertain whether violations of federal securities laws have been committed.

The following legal entities have declared their intentions to look into the matter: Kahn Swick & Foti, LLC; Girard Gibbs LLP; Rosen Law Firm; The Schall Law Firm; Levi & Korsinsky, LLP; Block & Leviton LLP; Bronstein, Gewirtz & Grossman, LLC; Glancy Prongay & Murray LLP; and Howard G. Smith.

Share price down more than 70 percent

The share price of Aegean Marine Petroleum Network Inc plummeted during trading on Tuesday following the company's announcement that it expects to write off $200 million of accounts receivable owed.

By 9.30 a.m., the share value had dropped by $2.07, or 70.9 percent, to $0.85, compared to the previous day's closing price; and by the end of the day, Aegean's share price was down $2.15, or 72.8 percent, to $0.77.