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The official complaint (link opens in PDF) charges Atlantic Power with violations of the Securities Exchange Act of 1934 and alleges that the company knowingly supported its 10% payout with unsustainable cash flows even as many of its project contracts were set to expire in 2013.
According to a Robins Geller press release statement, "As the market learned the truth about Atlantic Power's mounting losses and its inability to maintain its outsized dividend through a number of misleading financial disclosures between Nov. 7, 2012, and March 4, 2013, more than $1 billion of the company's market capitalization disappeared."
The class action suit applies to all Atlantic Power stock purchases between July 23, 2010, and March 4 of this year. As of this writing, Atlantic Power hasn't publicly responded to the firm's allegations.