As the leader in class action litigation against independent energy companies in the U.S., WMP has filed a class action complaint against Just Energy Group, Inc. (“Just Energy) (NYSE: JE) in the U.S. District Court for the Southern District of New York (Civil Action No. 19 Civ. 08236) on behalf of investors who purchased securities in Just Energy during the period from May 16, 2018 through and including August 19, 2019 (the “Class Period”). This lawsuit pertains to recent revelations by Just Energy in August 2019, and therefore covers investors who are not included in any other pending securities class actions against the company.
The class action alleges that Just Energy and its Chief Executive and Chief Financial Officers misrepresented the adequacy of Just Energy’s internal financial controls and the true value of the company’s receivables in the Texas residential and U.K. markets. Between July 23, 2019 and August 19, 2019, Just Energy admitted to material weaknesses in the design and operation of its internal controls and procedures, and that its allowance for doubtful accounts for the fiscal year ended March 31, 2019 was understated by $111.2 million – $53.7 million for doubtful accounts in its Texas residential market, and $57.5 million related to operational and collection issues in its U.K. market.
As a result, Just Energy further announced that it would restate its financial results for the third quarter of its 2019 fiscal year and for the first quarter of its 2020 fiscal year, and that its CEO would be leaving the company. These disturbing reports caused the price of Just Energy’s common stock to drop precipitously, from $4.38 per share to $1.18 per share.
If you purchased Just Energy securities at any time from May 16, 2018 through August 19, 2019, you may, no later than September 30, 2019, move to be appointed as a Lead Plaintiff.
A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained losses on your purchases of Just Energy securities during the Class Period, please contact us.