Consolidated Shareholder Derivative Lawsuit Moves Ahead Against PG&E Officers and Directors
CPM’s Frank Pitre and Mark Molumphy and its co-counsel filed a derivative action against the officers and directors of Pacific Gas & Electric Co. for breach of their fiduciary duties and for their mismanagement of PG&E for more than a decade. The case continues to move forward in the San Mateo Superior Court. The complaint alleges that in the aftermath of the September 9, 2010 San Bruno pipeline explosion, which resulted in the deaths of eight people, governmental reports revealed a pattern of under spending by PG&E for operations and maintenance. The complaint alleges these facts were well known throughout the company, PG&E’s incomplete and inaccurate records made it impossible for engineers to make the best decisions in regards to pipeline operations and maintenance, and PG&E’s senior management ignored the known concerns raised by its own engineers.