The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (i) Aegean Marine had improperly accounted for an approximate$200 millionof accounts receivable as ofDecember 31, 2017; (ii) Aegean Marine failed to maintain effective internal control over financial reporting; and (iii) as a result of the foregoing, the Company’s statements about Aegean Marine’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
Specifically, on June 4, 2018, Aegean Marine filed a Form 6-K announcing preliminary findings from the review, including that “approximately $200 million of accounts receivable at December 31, 2017 will need to be written off.” The 6-K states certain “transactions that gave rise to the accounts receivable … may have been, in full or in part, without economic substance and improperly accounted for in contravention of the Company’s normal policies and procedures.”
After the announcement, Aegean Marine’s share price fell from $2.85 per share on June 4, 2018 to a closing price of $0.70 on June 5, 2018-a $2.15 or a 75.43% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi and Faruqi, LLP also encourages anyone with information regarding Aegean Marine’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.