In Re Dynagas Lng. Partners LP Securities Litigation, No. 19-04512 (S.D.N.Y.)
On May 17, 2019, E&C filed a securities class action in the Southern District of New York asserting claims under Sections 10(b), 20A and 20(a) of the Securities Exchange Act of 1934 against Dynagas LNG Partners LP (“Dynagas” or the “Company”), its subsidiaries and certain of its senior officers. The complaint alleges that the Defendants made materially false and misleading statements and omissions of material facts concerning the terms of the Company’s long-term contracts on its liquid natural gas ships, Arctic Aurora and Ob River. As a result of the Defendants’ misstatements and omissions, Dynagas securities traded at artificially inflated prices during the class period. Such inflation was removed when it was revealed that the Arctic Aurora and the Ob River were operating under new extended charter contracts which were at lower rates compared to the previous charter contracts, thereby undermining the Company’s ability to make future distributions. The complaint seeks an award of damages, and interest thereon, to the Plaintiffs and other class members.
On August 12, 2019, the Court appointed E&C as Lead Counsel in the action. Thereafter, E&C filed an amended complaint on September 26, 2019 (a copy of which can be viewed here). The amended complaint asserted additional claims under Sections 11, 12(a)(2) and 15 of the Securities Act related to Dynagas’s October 2018 offering of Series B Preferred Units. The Defendants moved to dismiss the amended complaint on December 5, 2019. Following full briefing, on November 25, 2020, the District Court granted the motion to dismiss as to the Exchange Act claims but denied it as to the Securities Act claims. The parties commenced discovery in January 2021.