On June 5, 2018, investors sued Aegean Marine Petroleum Network, Inc. (“Aegean” or the “Company”) in United States District Court, Southern District of New York. Plaintiffs in the federal securities class action allege that they acquired Aegean stock at artificially inflated prices between April 28, 2016, and June 4, 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 Aegean class action (ANW Class Action):

Summary of the Allegations

Company Background

The Company (NYSE: ANW) is a marine fuel logistics business that “markets and physically supplies refined marine fuel and lubricants to vessels in port, at sea and on rivers.” As such, it obtains the product from numerous sources, and then resells and delivers it to customers from its bunkering vessels.

According to its website, Aegean’s “highly qualified team boasts years of experience in every aspect of the marine fuel supply and shipping industry.” The Company also says that it has “a global market in more than 30 countries.”

As stated in the June 5 complaint, the Company had more than 40 million shares of common stock outstanding as of September 30, 2017.

Summary of Facts

Aegean and two of its current and/or former officers now stand accused of deceiving investors by lying and withholding critical information about the Company’s business practices and prospects during the Class Period.

Specifically, they are accused of omitting truthful information about how Aegean accounted for certain accounts receivable and its failure to maintain effective internal controls over financial reporting from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Aegean’s stock to trade at artificially inflated prices during the time in question.

The truth emerged in a series of events between April 30, 2017 and June 5, 2018. In a form filed with the SEC on June 5, the Company disclosed the preliminary findings of its internal review of its financial reporting. In this context, the Company revealed that the Audit Committee “believes that approximately $200 million of accounts receivable owed to the Company at December 31, 2017 will need to be written off.”

On the same form, the Company also disclosed that: “The transactions that gave rise to the accounts receivable (‘the Transactions”) 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.”

A closer look…

In the June 5 complaint, plaintiffs allege that the Company repeatedly made misleading public statements throughout the Class Period.

For example, on a form filed with the SEC on April 28, 2016, Aegean said in pertinent part: “Our management is responsible for approving credit limits above certain amounts, setting and maintaining credit standards and managing the overall quality of our credit portfolio.”

On the same form, the Company also stated: “At the end of each reporting period, we calculate an allowance for doubtful accounts based on an aging schedule where we apply set percentages to categories of overdue trade receivables. These set percentages are based on historical experience and currently available management information on customer accounts.”

The Company reiterated the statements on another form filed with the SEC on May 16, 2017, and reported approximately $503 million in trade receivables for the fiscal year that ended on December 31, 2016. The figure represented significant increase over the amount reported for trade receivables the previous year.

Impact of the Alleged Fraud on Aegean’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 August 6, 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 Aegean 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.