Energy Transfer LP

Investigation
12/16/2021

Initial Lawsuit
06/03/2022

Lawsuit Progression
08/02/2022

Investigation

Continous Holding
April 3, 2017 to December 16, 2021
Proposed Claim
Securities Violation

Investors’ investigation in connection with the Federal Energy Regulatory Commission (FERC) proposed $40 million civil penalty to Rover Pipeline, LLC, a subsidiary of Energy Transfer, in connection with the alleged use of toxic diesel fuel and other toxic substances.

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. 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 subsequently filed. We will update this post as it unfolds.

Main Event

$40M Proposed Fine

12/16/2021

U.S. Agency

The Federal Energy Regulatory Commission (FERC) proposed $40 million civil penalty to Rover Pipeline, LLC, a subsidiary of Energy Transfer, in connection with horizontal directional drilling (HDD) operation under the Tuscarawas River and a large inadvertent release of 2 million gallons of drilling mud flowing into a nearby protected wetland in April 2017.

“The Enforcement staff report alleges that crews employed by Rover’s contractors added toxic diesel fuel, hydraulic oil, contaminated containment fluids, and non-toxic but unapproved lubricants to combat drilling difficulties and keep up with drilling progress demands. It further alleges these violations were the product of a corporate culture favoring speed and construction progress over regulatory compliance that Rover pressed upon its contractors, and that its contractors in turn imposed on subcontractors and HDD crews.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$8.49	$8.36	$0.13	1.56%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 06/03/2022

A shareholder filed this federal securities class action on behalf of a class consisting of all persons other than defendants who purchased or otherwise acquired common shares of Energy Transfer stock between April 13, 2017 and December 20, 2021, both dates inclusive.

Filing Date
06/03/2022
Class Period
04/13/2017 to 12/20/2021
Transgression
Securities Violation
Filing Firms
Lowey Dannenberg, P.C.
Case Title
Vega v. Energy Transfer LP et al
Docket Number
1:22-cv-04614
Court
New York Southern 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:

(a) Energy Transfer had inadequate internal controls and procedures to prevent contractors from engaging in illegal conduct with regards to drilling activities, and/or failed to properly mitigate known issues related to such controls and procedures;
(b) Energy Transfer through its subsidiary Rover Pipeline, LLC (Rover) hired third-party contractor to conduct Horizontal Directional Drilling Activities (HDD) for the Rover Pipeline Project, whose conduct of adding illegal additives in the drilling mud caused severe pollution near the Tuscarawas River when a large inadvertent release took place on April 13, 2017;
(c) Energy Transfer continually downplayed its potential civil liabilities when the Federal Energy Regulatory Commission (FERC) was actively investigating the Partnership’s wrongdoing related to the April 13 Release and consistently provided it with updated information about FERC’s findings on this matter.