Scott+Scott, Attorneys at Law, LLP Files Securities Class Action Against Teekay Corporation (TK)

NEW YORK--()--Scott+Scott, Attorneys at Law, LLP filed a class action complaint in the United States District Court of Connecticut on behalf of investors who purchased Teekay Corporation (“Teekay” or the “Company”) (NYSE:TK) common stock between June 30, 2015 and December 17, 2015, inclusive (the “Class Period”).

“Board of Directors has approved a plan to reduce the Company’s quarterly dividend to $0.055 per share, down from $0.55 per share in the third quarter of 2015, commencing with the fourth quarter of 2015 dividend payable in February 2016.”

Teekay was founded in 1973 as a regional shipping company and tanker operator. Today, Teekay has a diversified fleet with over $12 billion in assets and some of the world’s largest fleets in the Company’s core markets.

On December 16, 2015, Teekay issued a press release in which it announced that the Company’s “Board of Directors has approved a plan to reduce the Company’s quarterly dividend to $0.055 per share, down from $0.55 per share in the third quarter of 2015, commencing with the fourth quarter of 2015 dividend payable in February 2016.” On this news, Teekay’s share price declined 58%.

The complaint alleges that during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose 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; (3) the cash flows from the Company’s master limited partnerships (“MLPs”) – Teekay LNG Partners LP (“TGP”) and Teekay Offshore Partners LP (“TOO”) – could not possibly sustain such high dividends; and (4) Teekay misled the market about the strength of its business and financial condition.

You can view a copy of the complaint here: Complaint

If you purchased Teekay stock and wish to serve as a lead plaintiff in the action, you must move the Court no later than May 2, 2016. Any member of the class may move the Court to serve as lead plaintiff through counsel of its choice or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information: http://www.scott-scott.com.

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide and has recovered hundreds of millions of dollars on behalf of their clients.

Contacts

Scott+Scott, Attorneys at Law, LLP
Michael Burnett
800-404-7770
860-537-5537
scottlaw@scott-scott.com
or
mburnett@scott-scott.com

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