| CASE CAPTION |
Delaware County Employees Retirement System, et al. v. Cabot Oil & Gas Corporation, et al. |
| COURT |
United States District Court for the Southern District of Texas |
| CASE NUMBER |
21-cv-02045 |
| JUDGE |
Honorable Lee H. Rosenthal |
| PLAINTIFFS |
Delaware County Employees Retirement System; Iron Workers District Council (Philadelphia & Vicinity) Retirement and Pension Plan |
| DEFENDANTS |
Cabot Oil & Gas Corporation (“Cabot” or the “Company”), Dan O. Dinges, and Scott C. Schroeder |
| CLASS PERIOD |
February 22, 2016 through June 12, 2020, inclusive |
This securities fraud class action case arises out of Defendants’ representations and omissions regarding Cabot’s legal compliance, polluting activities and risk. During the Class Period, Cabot touted its compliance with applicable environmental laws and being a good steward of the environment. Unbeknownst to investors, Cabot’s environmental infractions were so extreme that after a lengthy grand jury investigation Pennsylvania charged Cabot with fifteen crimes, including nine felonies.
Plaintiffs filed a 102-page complaint in April 2021 on behalf of a putative class of investors alleging that Cabot and its CEO Dan O. Dinges, CFO Scott C. Schroeder, and Senior Vice President Phil L. Stalnaker, violated Sections 10(b) and 20(a) of the Securities Exchange Act by making false and misleading statements and concealing material facts about the Company’s ongoing violations of environmental laws and polluting of Pennsylvania’s waters. As alleged, following revelations about Cabot’s legal compliance and subsequent criminal charges, Cabot’s stock price fell precipitously, causing significant losses and damages to the Company’s investors. Plaintiffs filed an amended complaint on February 11, 2022.
On August 10, 2022, the Court sustained Plaintiffs’ claims based on allegations that Cabot made false and misleading statements about its efforts to resolve and remediate environmental violations noticed by the Pennsylvania Department of Environmental Protection on Cabot’s wells, and affirmatively misled investors about the status of Cabot’s compliance with environmental laws and local regulatory authorities. The case is now in fact discovery. On September 27, 2023, the Court granted Plaintiffs’ motion for class certification, certifying a Class of all persons or entities who purchased or otherwise acquired Cabot common stock between February 22, 2016 and June 12, 2020. In that same order, the Court appointed Plaintiffs as class representatives and Kessler Topaz as co-lead Class counsel. On May 6, the parties announced a settlement was reached. Plaintiffs are now seeking final approval of that settlement.
Read Consolidated Complaint Here
Read Amended Complaint Here