September 25, 2017
Motley Rice commences review of SCANA Nuclear Project
Motley Rice LLC, one of the nation’s largest plaintiffs’ law firms and headquartered in Mount Pleasant, S.C., is reviewing claims of potential losses sustained by shareholders in connection with SCANA Corporation’s failed multi-billion dollar nuclear project in Fairfield County, S.C. Investors who held stock in the company between January 2016 and the present and have suffered losses may have a potential claim.
SCANA (NYSE: SCG) is a South Carolina-based energy company that provides electricity, natural gas, and related services to consumers in South Carolina, North Carolina and Georgia.
Since 2008, through its primary subsidiary South Carolina Electric & Gas (SCE&G), SCANA has reportedly spent more than $10 billion on plans to construct two nuclear reactors in South Carolina. This investment was funded by consumer rate hikes and investor dollars. While the company and its executives repeatedly claimed that the project was making substantial progress, it was allegedly experiencing crippling delays, cost overruns and mismanagement that culminated in SCANA’s recent announcement that it would abandon the project.
Motley Rice is reviewing allegations that SCANA hid the project’s troubles from shareholders and regulators, wasting billions of consumer and investor dollars. In March 2017, the nuclear project’s alleged problems increased when Westinghouse Electric Company, the primary contractor on the project, filed for bankruptcy. The total cost of the project has reportedly doubled to $21 billion with completion still years away. In July 2017, SCANA announced that it would abandon the project. In August 2017, news reports stated that SCE&G may not resume construction of the nuclear reactors even if a new partner was located.
News of SCANA’s alleged misrepresentation of the project and reported failures have caused the company’s stock prices to decline steadily as the extent of the problems has been revealed. The U.S. Attorney’s Office recently served SCANA with a subpoena in connection with a criminal grand jury investigation.
If you purchased common stock of SCANA Corp. between January 2016 and the present you may have a claim. Motley Rice securities attorney William S. Norton has represented investors in numerous shareholder fraud suits and may be reached 1-800-768-4026 or by email.