Deloitte & Touche, LLP & Deloitte, LLP (on behalf of holders of The Southern Company traded “SO”)

  • Active

Investigation
02/17/2022

Initial Lawsuit
02/17/2022

Lawsuit Progression
06/01/2022

Investigation

  • Continous Holding
    May 10, 2017 to February 20, 2020
  • Proposed Claim
    Securities Violation

Investors investigation into The Southern Company’s accounting firm, Deloitte, and statements made in connection with the Kemper Plant. Is the lawsuit the logical continuation of the $87.5 million settlement with The Southern Company shareholders last year?

This post is opened for investors to gather facts, findings and track their exposure to related lawsuit. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was filed, we take the responsibility to update it as it goes.

Main Event

Deloitte's Explanation of Critical Audit Matter

02/20/2020

SEC Filing

The Southern Company files its annual report on Form 10-K with the U.S. Securities and Exchange Commission (SEC). The filing contains Deloitte & Touche LLP’s report as independent registered public accounting firm of Georgia Power Company (a wholly owned subsidiary of The Southern Company) and its involvement in the Plant Vogtle Units 3 and 4 Construction.

The lawsuit alleges that “Deloitte’s description of the detailed involvement it had with Southern on another energy project being constructed and audited at the same time as the Kemper Plant suggest[s] that Deloitte would have been similarly involved in Southern’s construction process at the Kemper Plant.”

The lawsuit further explains that “Deloitte’s acknowledgment that it audited the Kemper Project costs and its detailed description of what it does when auditing CAMs make clear that Deloitte would not only have known that Southern’s statements concerning that Kemper Plant were false and misleading, but that Deloitte prevented accurate information concerning the true status of the Kemper Project and its associated losses from timely reaching Southern’s shareholders.“

See more on Factual Timeline

Initial Lawsuit

First Complaint - 02/17/2022

Plaintiff brings this federal securities class action against Deloitte & Touche, LLP and Deloitte, LLP on behalf of himself and on behalf of a class consisting of all persons and entities who purchased, acquired, or otherwise held, or sold, the publicly traded securities of The Southern Company between May 10, 2013 and February 20, 2020, inclusive.

  • Filing Date
    02/17/2022
  • Class Period
    05/10/2013 to 02/20/2020
  • Transgression
    Securities Violation
  • Filing Firms
    Warren & Griffin, PC
    Bienert Katzman Littrell Williams LLP
    GORDON BALL, LLC
  • Case Title
    Formby v. Deloitte & Touche, LLP et al
  • Docket Number
    1:22-cv-00670
  • Court
    Georgia Northern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Deloitte was Southern’s auditor and had a duty to act as gatekeeper ensuring Southern’s accurate reporting of information to the investing public but instead violated its professional responsibilities, failed in its role of gatekeeper, and deceived investors about Southern’s accounting for and expected completion of the Kemper Plant;
(ii) Deloitte’s untrue statements and omissions of material facts concerning the Kemper Plant operated as a fraud and deceit upon plaintiff and others similarly situated in connection with their purchases and value of Southern securities during the class period.

See detailed allegations throughout the complaint.

Defendants

  • Company
    Deloitte & Touche, LLP
  • Company
    Deloitte, LLP

Lawsuit progression

  • Docket Number
    1:22-cv-00670
  • Court
    Georgia Northern District Court

Lead Counsel

06/01/2022

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Gordon Ball PLLC
    Bienert Katzman Littrell Williams LLP
  • Lead Plaintiff
    Individual
  • Free File
    Order for lead
[stockdio-historical-chart symbol=”SO” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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