A class-action lawsuit has been filed against Southern Co. over Mississippi Power’s construction of the Kemper County energy plant.
The suit charges Southern Co. and some of its officers and directors with violations of the Securities Exchange Act of 1934. Robbins Geller Rudman & Dowd LLP filed the suit in the United States District Court for the Northern District of Georgia on behalf of those who bought Southern Co. stock between April 25, 2012, and Oct. 29, 2013.
Southern Co, and Mississippi Power announced plans for a “clean coal” plant in 2006. The project had a funding package of almost $1 billion in grants from the U.S. Department of Energy and tax credits from the Internal Revenue Service when Southern Co., broke ground in 2010, according to the lawsuit. The financing was contingent on completing construction of the plant by May 2014.
The complaint alleges Southern Co. defendants “made false and misleading statements and/or failed to disclose adverse information regarding the progress of the Kemper Plant, assuring investors that the project would be completed by the critical May 2014 deadline, even when cost overruns and other delays began to materialize.”
Southern Co. common stock traded at artificially inflated prices during the class action period from 2012 to 2013, the suit claims. The price of stock “declined significantly” after Southern Co. announced its third quarter 2013 financial results and said the in-service date for Kemper would be delayed, the filing said.
Over the last five years, a Google search shows Southern Co.’s stock has traded between about $40 and $55.