Atlantic Power Faces Investor Suit After Slashing Dividend

Law360, New York (April 24, 2013, 5:18 PM EDT) -- An Atlantic Power Corp. shareholder on Tuesday zapped the energy giant with a proposed class action in Massachusetts federal court over a recent dividend reduction, accusing executives of misleading investors into thinking robust payouts were sustainable.

Shareholder John Dornan sued on behalf of investors who purchased Atlantic stock between July 23, 2010, and March 4, 2013, during which time the company paid “an outsized 10 percent” dividend that compared favorably with the typical maximum of 4 percent among public companies, according to the complaint.

In late...
To view the full article, register now.