NEW YORK, April 24, 2018 /PRNewswire/ -- Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it filed a securities class action lawsuit on behalf of its client City of Riviera Beach General Employees Retirement System against Macquarie Infrastructure Corporation ("Macquarie" or the "Company") (NYSE: MIC), and certain of its current and former executives (collectively, "Defendants"). The action, which is captioned City of Riviera Beach General Employees Retirement System v. Macquarie Infrastructure Corporation, et al., No. 1:18-cv-03608 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§ 78j(b) and 78t(a), and SEC Rule 10b‑5 promulgated thereunder, 17 C.F.R. § 240.10b-5, on behalf of investors who purchased Macquarie's stock between February 22, 2016 to February 21, 2018, inclusive (the "Class Period").
The Complaint alleges that, during the Class Period, Defendants violated provisions of the Exchange Act by issuing false and misleading press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), and statements during investor and analyst conference calls. Macquarie owns and operates a portfolio of infrastructure and infrastructure-like businesses. Macquarie's most important business segment is its International-Matex Tank Terminals ("IMTT") business, which provides bulk liquid storage and handling services at marine terminals in the United States and Canada.
Throughout the Class Period, Defendants misrepresented and concealed material risks facing the IMTT business. Defendants repeatedly emphasized IMTT's "very strong" performance and "high" utilization rates. Defendants touted Macquarie's "good visibility" into "macroeconomic factors influencing supply and demand" as evidence of IMTT's stability, but concealed IMTT's dependence on heavy residual oil, the use of which had been in decline for years. Rather than disclose the material risk to the Company presented by the decline in heavy residual oil products, Defendants downplayed Macquarie's exposure to fluctuations in the use of petroleum products. Defendants also provided false assurances regarding the sustainability of Macquarie's dividend.
Defendants' misrepresentations and material omissions rendered investors unable to appreciate or assess the material risks to IMTT of shifting commodity demands, and the resultant impact to the Company's dividend. When the truth regarding IMTT's dependence on heavy residual fuel oils was finally revealed on February 21, 2018 and Macquarie announced that it would be slashing its dividend by 31%, the price of the Company's stock declined significantly.
If you wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than June 25, 2018, which is the first business day on which the District Court for the Southern District of New York is open that is 60 days after the publication date of April 24, 2018. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
City of Riviera Beach General Employees Retirement System is represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at [email protected].
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.
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