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Lawsuit against Santee Cooper, claims that investors were deceived over nuclear project risks

Lawsuit: Santee Cooper misled investors about failed SC nuclear project, Post and Courier,   By John McDermott jmcdermott@postandcourier.comm Apr 17, 2019  

A Santee Cooper investor is suing the state-owned power company and its former chief executive, alleging they violated securities laws by not adequately disclosing the financial risks associated with the V.C. Summer nuclear project while selling debt several years ago.

Murray C. Turka is seeking class-action status to include others who purchased as much as $118 million of the utility’s “Mini-Bonds” from 2014 to 2016.

Lonnie Carter, who was Santee Cooper’s CEO at the time, is named a co-defendant in the complaint filed in U.S. District Court in Charleston this week.

The lawsuit alleges Carter and other key decision-makers knew by mid-2015 that the expansion of the V.C. Summer power plant “was hopelessly behind schedule” based on a largely unfavorable assessment of the troubled project by the engineering firm Bechtel Corp.

Auditors found that the reactors’ designs were sometimes impossible to build, that construction wouldn’t be finished in time to qualify for critical federal tax breaks and that South Carolina’s utilities were either too “inexperienced or reluctant to act” as problems mounted.

“Still, executives disclosed nothing of this to Mini-Bond investors,” according to the complaint…….. https://www.postandcourier.com/business/lawsuit-santee-cooper-misled-investors-about-failed-sc-nuclear-project/article_2dc4cd10-612a-11e9-a41c-8f4e572cf265.html

April 18, 2019 - Posted by | Legal, USA

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