Third Coast Midstream, LLC f/k/a American Midstream Partners, LP

Company NameThird Coast Midstream, LLC f/k/a American Midstream Partners, LP
Stock SymbolAMID
Class PeriodJuly 27, 2018 to July 23, 2019
Motion DeadlineDecember 9, 2019

A securities class action has been filed against Third Coast Midstream, LLC f/k/a American Midstream Partners, LP (“American Midstream” or the “Company”) and certain of its officers and directors. The lawsuit alleges violations of the federal securities laws that resulted in significant harm to American Midstream common unit owners who sold their units between July 27, 2018 through July 23, 2019. Investors who sold AMID units and are interested in participating the lawsuit as a lead plaintiff, are encouraged to submit your information below. Investors may also email the firm to obtain information at shareholder@tenlaw.com or call (617) 531-3917.

This lawsuit alleges that there was an undisclosed scheme set in place by Defendants to take American Midstream private for a fraction of its value and that the Defendants abused their control over the Company by first reducing, and then withholding, American Midstream’s quarterly distribution, which caused its unit price to plummet.

According to the lawsuit, on July 27, 2018, American Midstream declared a 75 percent reduction in the Company’s quarterly common unit distribution. As a result, American Midstream’s unit price allegedly declined over 42 percent, falling from $11.55 to $6.60 on July 27, 2018. The lawsuit further alleges that on December 31, 2018, American Midstream reported that because of an amendment to its credit facility agreement, it did not expect to make any distributions to its unit holders in the upcoming fourth quarter of 2018, and would continue to withhold said distributions until its consolidated total leverage ratio was reduced. On this news, American Midstream’s common units declined $1.30, or 30 percent, closing at a price of $3.03 per unit on December 31, 2018. Finally, the lawsuit claims that on March 18, 2019, American Midstream publicly disclosed it had entered into a merger agreement with a subsidiary of ArcLight Capital Partners pursuant to which American Midstream unitholders would receive $4.50 per unit. On July 23, 2019, American Midstream announced the closing of the merger.

The lawsuit alleges that as a result of the distribution cuts put in place by virtue of ArcLight’s control over the Company, American Midstream minority unitholders received approximately 60 percent less consideration for their units than the common unit price immediately prior to the distribution cut on July 27, 2018.

Investors who AMID unites between July 27, 2018 through July 23, 2019are encouraged to contact the Thornton Law Firm’s shareholder rights team by submitting your information below. Interested AMID shareholders have until December 9, 2019 to apply to be lead plaintiff. The class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.

The Thornton Law Firm’s securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

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