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Atlantic Power Facing Class Action Lawsuit Over Share Price Decline

Merchant Law Group LLP launched a class action with the Ontario Superior Court of Justice, seeking to recover hundreds of millions of dollars in damages on behalf of Atlantic Power Corporation (ATP.TO) shareholders.

"Atlantic Power Corporation has experienced a dramatic recent loss in share value. ATP shares have fallen from a 52-week high of $15.12 to trading today at below $5.40. Canadians who own ATP shares have lost hundreds of millions of dollars in share value as a result," said Evatt Merchant, regarding the Canadian ATP litigation being handled by his law firm.

As stated in the litigation, Atlantic Power Corporation repeatedly emphasized in statements to the market that its previous dividends would be "sustainable into 2016 before considering any positive impact from potential future acquisitions or organic growth opportunities." Notwithstanding those previous statements, shareholders have recently seen the dividend paid on their shares slashed by more than half, Merchant said.

The litigation launched today is the first shareholder class action filed against Atlantic Power Corporation in Canada, and Atlantic Power Corporation is also facing several major class actions in the United States.

ATP shares fell four cents to $5.24.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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