Arclight Capital Partners Wins Dismissal of Shareholder Claims

Arclight Capital Partners LLC won dismissal of a proposed class action by shareholders over its acquisition of American Midstream Partners LP after a federal court in Manhattan found the plaintiffs failed to allege facts to support a believable theory of securities fraud.

The plaintiffs alleged that American Midstream, now known as Third Coast Midstream LLC, intentionally misled its shareholders about its financial status and a would-be transaction but offered no facts beyond speculation to support their claims, Judge Lewis J. Liman wrote for the U.S. District Court for the Southern District of New York.

The shareholders’ would-be class action claimed ...