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 allegedly 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.

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.  The Defendants moved to dismiss the amended complaint on December 5, 2019.  Subsequently, on November 25, 2020, the Court issued an opinion granting in part and denying in part Defendants’ motion to dismiss.

After extensive negotiations, the parties reached an agreement to settle the litigation and moved for preliminary approval of the settlement on May 21, 2021. On June 10, 2021, the Court issued an Order granting preliminary approval of the settlement.

On November 5, 2021, the Honorable Alison J. Nathan granted E&C’s Motion for Final Approval of Settlement at a hearing before the Court.

On November 16, 2022, the Court approved E&C’s unopposed Motion for Distribution of Net Settlement.  Distribution of settlement funds is expected to take place in 2023.

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