Cabot investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Cabot is an independent oil and gas company that explores for, exploits, develops, produces, and markets oil and gas properties in the United States with a primary focus on the Marcellus Shale in Susquehanna County, Pennsylvania.
The Class Period commences on October 23, 2015, when Cabot filed its quarterly report on a Form 10-Q with the SEC, which downplayed Cabot’s potential liabilities with respect to environmental matters.
On July 26, 2019, Cabot filed its second quarter 2019 Form 10-Q with the SEC, reporting that it received two proposed Consent Order and Agreements related to two Notices of Violation it received from the Pennsylvania Department of Environmental Protection for failure to prevent the migration of gas into fresh groundwater sources in the area surrounding Susquehanna County. Cabot received the Notices of Violation in June and November 2017.
Following this news, the price of Cabot common stock declined 12%. However, Cabot’s stock continued to trade at artificially inflated prices throughout the remainder of the Class Period as a result of the defendants’ continued misstatements and omissions.
Then, on June 15, 2020, before the market opened, following a grand jury investigation, the Attorney General’s office charged Cabot with 15 criminal counts arising from its failure to fix faulty gas wells, thereby polluting Pennsylvania’s water supplies through stray gas migration. Following this news, the price of Cabot shares declined more than 3%.
The complaint alleges that throughout the Class Period, the defendants concealed and misrepresented that: (a) Cabot had inadequate environmental controls and procedures and/or failed to properly mitigate known issues related to those controls and procedures; (b) Cabot failed to fix faulty gas wells which polluted Pennsylvania’s water supplies through stray gas migration; and (c) Cabot continually downplayed its potential civil and/or criminal liabilities with respect to environmental matters. These issues were foreseeably likely to subject Cabot to increased governmental scrutiny and enforcement, as well as increased reputational and financial harm, and would also materially impact Cabot’s financial results. These omissions and misrepresentations caused Cabot’s stock price to trade at artificially inflated prices throughout the Class Period.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (James Maro, Esq. (484-270-1453) or Adrienne Bell, Esq. (484-270-1435)); toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com