In re PG&E Corporation Securities Litigation

Labaton Keller Sucharow serves as court-appointed lead counsel representing the Public Employees Retirement Association of New Mexico (PERA) in a securities class action against PG&E Corporation (PG&E), Pacific Gas and Electric Company (the Utility), and certain related officers, directors, and underwriters. The action alleges that the Defendants made false and misleading statements about safety and compliance prior to the devastating Northern California wildfires in October 2017 (the North Bay Fires) and November 2018 (the Camp Fire), in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11 and 15 of the Securities Act of 1933.

The case is In re PG&E Corporation Securities Litigation, No. 18-cv-03509 (N.D. Cal.) (the Action).  

The Action asserts class claims on behalf of stock, options, and bond purchasers, including violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, as well as Sections 11 and 15 of the Securities Act of 1933.  It is pending in federal district court in San Francisco before Judge Edward J. Davila.

On January 29, 2019, the Utility and PG&E Corp. (together, PG&E) filed jointly for bankruptcy protection, which has had the effect of staying the Action.  The jointly administered bankruptcy actions are before Bankruptcy Judge Dennis Montali, Case Nos. 19-br-30088 and 19-br-30089, Bankr. N.D. Cal. (together, the PG&E Bankruptcy).  On September 30, 2022, Judge Davila issued an order staying the securities class action against all Defendants pending the resolution of the PG&E Bankruptcy.  PERA’s appeal of that order has been fully briefed and argued but the Ninth Circuit Court of Appeals has not yet issued its opinion.

Bankruptcy Filing and Initial Stay

Judge Dennis J. Montali presides over these jointly administered bankruptcy proceedings.  Initially, Judge Edward J. Davila of the District Court stayed the securities class action pending the resolution of the bankruptcy proceedings.

Significant Victories in Bankruptcy Court‍

1. Class Treatment:  On September 12, 2023, Judge Montali granted PERA's Bankruptcy Rule 7023 motion, holding that class treatment of securities claims would be beneficial.

2. Leadership Appointment:  On January 30, 2024, Judge Montali appointed PERA as Lead Plaintiff and Labaton Keller Sucharow as Lead Counsel for securities claimants in the bankruptcy proceedings.

3. Claim Sufficiency:  On September 18, 2024, Judge Montali largely overruled PG&E's sufficiency objection to PERA's proof of claim.  PERA has since moved to certify a class of securities claimants and is actively pursuing discovery.

District Court Proceedings

Following PERA's successful appeal, the Ninth Circuit vacated Judge Davila's stay order on May 3, 2024, finding that the lower court failed to consider the prejudice to Plaintiffs.  Defendants' motions to dismiss the complaint were fully briefed as of January 31, 2025, and will be heard by Judge Davila on February 27, 2025.

The case proceeds on parallel tracks in both the Bankruptcy Court and District Court, with active litigation ongoing in both venues.