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id: 317, Created by Stan Vick Chase, Scout
Aegean Marine Petroleum Network Inc.
27 February 2014Class period Start
05 November 2018Class period End
22 October 2022Claim deadline
In re Aegean Marine Petroleum Network Inc. Securities Litigation.
Aegean agreed to pay $29.8 million to settle a securities class action lawsuit accusing the Company of multiple suspected felonies.
Going back on November 2, 2018, following an internal investigation by outside counsel and retained forensic accountants, the Company announced that an Audit Committee had determined that:
- the Company’s financial results were manipulated by improperly booking approximately $200 million in accounts receivables from bogus transactions with four shell companies controlled by former employees or affiliates of the Company;
- approximately $300 million in cash and assets had been misappropriated by former affiliates, including through a 2010 contract with OilTank Engineering & Consulting Ltd.;
- Aegean’s management perpetrated and concealed the alleged financial fraud through various means including the falsification and forging of records such as bank statements, audit confirmations, contracts, invoices, and third party certifications;
- the revenues and earnings of the Company were substantially overstated in the years 2015, 2016 and 2017 and that both year-end and interim financials for these periods should no longer be relied upon and would need to be restated;
- there were material weaknesses in the Company’s internal controls over financial reporting (“ICFR”) as of December 31, 2015, 2016 and 2017 and, as such, management’s annual report on ICFR as of December 31, 2015, and 2016 included in the Company’s Annual Reports on Form 20-F and also for the 2017 interim results should no longer be relied upon and would need to be restated;
- insiders had engaged in additional actions to defraud the Company, including engaging in prepayments for future oil deliveries which were never made.
The U.S. Department of Justice had issued a grand jury subpoena in connection with suspected felonies.
Then, on November 6, 2018, Aegean commenced bankruptcy proceedings under Chapter 11.
After several years of court proceedings, Aegean agreed to settle with investors to avoid further litigation.
Utah Retirement Systems
Levi & Korsinsky, LLP
Southern District of New York
Hon. Naomi Reice Buchwald
A.B. Data Ltd
Court hearing date
13 September 2022
+$29,800,000Total Settlement Amount