NEW YORK–(BUSINESS WIRE)–Labaton Sucharow, an award winning, nationally ranked investor rights law firm is investigating UGI Corporation (NYSE: UGI) for potential securities violations.
UGI Corporation, headquartered in King of Prussia, Pennsylvania, distributes, stores, transports and markets energy products with operations throughout the United States and Europe.
On August 22, 2019, UGI Corporation merged with AmeriGas Partners L.P. (NYSE: APU), a large propane distributor. In connection with the merger, AmeriGas shareholders had the option of trading in their shares for cash or UGI stock. At the time the merger closed, UGI stock was trading at approximately $47 per share. Just three months after the merger, on November 12, 2019, UGI reported disappointing earnings for its fiscal quarter ended September 30, 2019 and issued surprisingly weak earnings guidance. Among other things, UGI Corporation attributed its poor performance to unfavorable weather conditions and capacity management margin of pipeline restrictions. On this news, analysts expressed their concern. For example, Jefferies issued a reported entitled: “In One Word: Ugly.” The report noted that the earnings guidance “seems to imply a severe deterioration in base operations.” On this news, UGI stock dropped more than 10 percent to close at $39.86 per share.
If you are a former shareholder of APU who became a shareholder of UGI in the merger and you wish to learn more about your rights, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at email@example.com.
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