On April 23, 2018, investors sued Macquarie Infrastructure Corporation (“Macquarie” or the “Company”) in United States District Court, Southern District of New York. The federal securities class action alleges that plaintiffs acquired Macquarie stock at artificially inflated prices between February 22, 2016 and February 21, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. Here’s everything you need to know about the Macquarie class action lawsuit (MIC class action lawsuit):

Summary of the Allegations

Company Background

The Company (NYSE: MIC) owns and operates several “infrastructure and infrastructure-like” businesses.

One of them, International-Matex Tank Terminals (IMTT), is described by the Company as “an industry leader in the handling and storage of bulk liquid products through its ownership and operation of ten terminals in the US and two additional facilities in Canada.” In addition to renting storage tanks, the Company says IMTT generates revenue by offering ancillary services including “product transfer (throughput), heating and blending.”

Macquarie’s alleged misrepresentations about IMTT are at the crux of the current lawsuit.

Summary of Facts

Macquarie and four of its current and/or former senior executives are now accused of deceiving investors by lying or withholding critical information about IMTT during the Class Period.

Specifically, they are accused of omitting truthful information about IMTT’s performance from SEC filings and related materials. By deliberately or recklessly doing so, they allegedly caused Macquarie stock to trade at artificially inflated prices during the time in question.

The truth emerged when announced its fourth quarter earnings after trading closed on February 21, 2018. In light of “disappointing results” the Company said it would be “slashing its dividend.” It also blamed the poor performance on “the loss of ‘half a dozen’ IMTT contracts at its flagship Louisiana storage facility due to a decline in the No. 6 fuel oil segment.”

A closer look…

As alleged in the April 23 complaint, Macquarie repeatedly made misleading public statements throughout the Class Period.

For example, on a form filed with the SEC on February 23, 2016, the Company said in pertinent part: “While the shortening of contracts results in a modest increase in re-contracting risk, the essential services nature of the business and continued strong demand for the products stored serves to offset this risk.”

On another form filed with the SEC on February 21, 2017, the Company continued to stress that IMTT had a stable customer base, saying: “For the year ended December 31, 2016, approximately 55 % of IMTT’s revenue was generated by its top ten customers of which seven were rated as investment grade and the other three were not rated. Customers typically sign contracts which, among other things, provide for a fixed periodic payment (usually monthly) for access to and use of IMTT’s facilities… These amounts are payable whether the customer uses the facilities or not.”

Finally, on another form filed with the SEC on November 1, 2017, the Company reiterated past statements about “IMTT’s high utilization rates and stability, saying: “We expect utilization levels to be approximately 94% over the long term, as they have been historically.”

Impact of the Alleged Fraud on Macquarie’s Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is June 25, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Macquarie common stock using court approved loss calculation methods.

Recently Filed Cases

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.