An investor in NYSE:DYN shares filed a lawsuit against Dynegy Inc over alleged securities laws violations. Deadline: May 28, 2012. NYSE:DYN stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/02/2012 -- An investor in NYSE:DYN shares filed a lawsuit in the U.S. District Court for the Southern District of New York against Dynegy Inc. over alleged Violations of Federal Securities Laws in connection with certain statement.
Investors who purchased shares of Dynegy Inc. (NYSE:DYN) common stock between September 2, 2011 and March 9, 2012, have certain options and there are strict and short deadlines running. Deadline: May 28, 2012. NYSE:DYN stockholders should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of all persons who purchased Dynegy Inc. (NYSE:DYN) common stock between September 2, 2011 and March 9, 2012, that Dynegy Inc. and certain of its officers violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the plaintiff alleges that defendants knew or recklessly failed to inform investors that Dynegy's wholly-owned subsidiary fraudulently transferred direct ownership in one of Dynegy's indirectly owned subsidiaries directly to Dynegy.
In August 2011 Dynegy Inc. (NYSE: DYN) announced that completed an internal restructuring and closed $1.7 Billion Refinancing . Dynegy said the overall liquidity as of August 5, 2011 was at approximately $1.0 billion.
On September 2, 2011, Dynegy Inc. (NYSE: DYN) announced that it has acquired direct ownership of Dynegy Coal Holdco, LLC, the indirect parent of Dynegy 's subsidiary Dynegy Midwest Generation, LLC. Dynegy Inc. said that as announced in August 2011, Dynegy Inc. established Dynegy Midwest Generation, LLC as part of an internal restructuring designed to increase flexibility and optimize asset value by creating separate coal-fueled and gas-fueled power generation units, for which $1.7 billion in stand alone first lien financings were obtained. Dynegy Inc. said the transfer of Dynegy Coal Holdco, LLC will help Dynegy Inc. delever its consolidated balance sheet by facilitating one or more potential transactions, which are currently under consideration by the Finance and Restructuring Committee of the Board. These potential transactions include exchanges of some or all of Dynegy Holdings' outstanding $3.5 billion in notes for new notes and/or cash.
On Dec 01, 2011, Dynegy Inc. (NYSE: DYN) announced that Dynegy Inc. and Dynegy Holdings, LLC file proposed Chapter 11 Plan of reorganization for Dynegy Holdings, LLC
However, on March 9, 2012, the Chapter 11 examiner in the bankruptcy cases of Dynegy Holdings, LLC and its debtor affiliates issued a \report. In the executive summary the examiner said, among other things, that he concluded that the conveyance of Dynegy Midwest Generation, LLC to Dynegy Inc. was an actual fraudulent transfer and, assuming that Dynegy Holdings was insolvent on the date of the transfer (approximately two months before the bankruptcy filing), a constructive fraudulent transfer, and a breach of fiduciary duty by the board of directors of Dynegy Holdings.
The examiner said that “Dynegy Inc., through its board of directors, used its power to control the affairs of Dynegy Holdings—an insolvent subsidiary whose property should have been maximized, or at least safeguarded, for the benefit of Dynegy Holding’s creditors—to disadvantage Dynegy Holdings for the benefit of Dynegy Inc. The examiner claims that “Throughout the planning and execution of the Prepetition Restructuring, the Dynegy Inc. board favored paths that benefited Dynegy Inc. and its stockholders to the detriment of Dynegy Holdings and its creditors.
Shares of Dynegy Inc. (NYSE:DYN) fell from as high as $6.64 per share on July 13, 2011 to as low as $0.49 per share on March 12, 2012 and closed on Wednesday, March 28, 2012 at $0.68 per share.
Friday, March 30, 2012 at $0.56 per share.
Those who purchased shares of Dynegy Inc. (NYSE:DYN) common stock have certain options and for certain NYSE:DYN stockholders there are strict and short deadlines running. Deadline: May 28, 2012. NYSE:DYN stockholders should contact the Shareholders Foundation.
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