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Robbins Arroyo LLP: The Southern Company (SO) Misled Shareholders According to a Recently Filed Lawsuit


Shareholder rights law firm Robbins Arroyo LLP announces
that a shareholder derivative lawsuit was filed on behalf of The
Southern Company (NYSE:SO) in the U.S. District Court for the Northern
District of Georgia, Atlanta Division. The complaint is brought against
certain current and former officers and directors of the company for
alleged breaches of fiduciary duties, unjust enrichment, and corporate
waste. Southern Company, together with its subsidiaries, engages in the
generation, transmission, and distribution of electricity through coal,
nuclear, oil and gas, and hydro resources in Alabama, Georgia, Florida,
and Mississippi. In 2006, Southern Company announced plans for its
subsidiary, Mississippi Power, to build a "clean coal" plant in Kemper
County, Mississippi (the "Kemper Plant").

View this information on the law firm's Shareholder Rights Blog:

Southern Company Accused of Providing Inaccurate Timeline for Its
Kemper Plant

According to the complaint, in an earnings call with investors and
analysts on July 28, 2010, Southern Company announced that the Kemper
Plant was expected to be placed in service in May 2014, with a
construction cost estimate of $2.4 billion. If timely built, the Kemper
Plant would qualify for nearly $700 million in federal incentives,
including $412 million in investment tax credits and $270 million in
clean coal power initiative funds.

In a series of subsequent public statements, Southern Company officials
repeatedly assured investors that the Kemper Plant would be completed by
the deadline. However, the complaint alleges that Southern Company
officials issued misleading statements about the company's business,
operations, and financial prospects, including misrepresentations
regarding internal controls over financial reporting and the costs and
timing of the expected completion of the Kemper Plant. In particular,
Southern Company failed to disclose that the Kemper Plant would not be
completed by the May 2014 deadline, that the total project cost would
exceed the $2.88 billion cost cap set by state regulators, and that the
company's management actively prevented accurate information regarding
the true status of the Kemper Plant from reaching investors.

On October 2, 2013, Southern Company revealed that the Kemper Plant
would not be completed by the May 2014 deadline and that the company
would have to repay $133 million in federal tax credits. However,
company officials continued to suggest that the Kemper Plant would be
completed in 2014 and that the company would still be eligible to
receive approximately $150 million of additional tax credits.

In May 2016, the company announced that it was being investigated by the
U.S. Securities and Exchange Commission regarding "accounting matters,
disclosure controls and procedures, and internal controls over financial
reporting" associated with the Kemper Plant. In July 2016, the New
York Times
published a report based on documents and recordings from
a whistleblower at Southern Company that revealed that company officials
intentionally concealed construction delays and issued misleading
statements in order to remain eligible for tax credits and avoid
disclosing to investors that the company would lose federal subsidies.
On February 22, 2017, Southern Company announced that the Kemper Plant
would not be fully operational until mid-March 2017, and that the
estimated cost of the project increased to $6.99 billion, more than
double the cost estimate at the time that construction began.

Southern Company Shareholders Have Legal Options

Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Darnell R. Donahue at
(800) 350-6003,,
or via the shareholder
information form
on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

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