Class Action Lawsuit Filed Against Avangrid by Former Shareholders of the Company

Monteverde & Associates PC Files Class Action Against Avangrid

In a significant legal move, Monteverde & Associates PC has announced the filing of a federal securities class action on behalf of former shareholders of Avangrid, Inc. in the Southern District of New York. This lawsuit is rooted in allegations concerning the company's recent acquisition by Iberdrola, S.A., which raises questions about the fairness and transparency of the process.

The case, entitled "Goldschein v. Avangrid, Inc. Case No. 25-cv-00772," targets the actions of Avangrid and some of its former executives. It focuses on stockholders who possessed Avangrid shares as of August 19, 2024, the date set for voting on the buyout, and whose shares were exchanged for specific merger compensation.

Allegations of Financial Unfairness

Under the buyout agreement, each share of Avangrid common stock was to be exchanged for $35.75 in cash. However, the lawsuit argues that this figure was not a fair representation of the company’s value, thereby disadvantaging stockholders. The complaint asserts that the proxy statements sent to shareholders by Avangrid contained materially misleading information and lacked crucial details that directly affected the shareholders’ decision-making process.

Notably, the lawsuit points out that members of Avangrid's 'Unaffiliated Committee,' a group tasked to safeguard the interests of stockholders during negotiations, may have had undisclosed connections to Iberdrola. It is claimed that these ties compromised the committee's independence, which was not adequately communicated to shareholders. The lack of transparency in the proxy statements could have led shareholders to believe that their interests were fairly represented during the buyout negotiations.

Seeking Justice for Shareholders

The buyout was officially concluded on December 23, 2024, but it seems that the legal ramifications are far from over. Monteverde & Associates PC is keen to gather affected shareholders to potentially serve as lead plaintiffs in this class action. Those interested in leading the case must do so by no later than March 31, 2025. The firm strongly encourages any shareholder who has concerns regarding the merger or the ensuing legal process to reach out for additional information.

Juan Monteverde, managing partner at the firm, expresses a passionate commitment to aiding shareholders who feel wronged, emphasizing that their firm operates with a distinguished history of recovering funds for clients through rigorous litigation. The firm is based in the iconic Empire State Building, a testament to its influence and integrity within the legal sphere.

In a statement, Monteverde said, "No corporation or executive is above the law. We stand ready to fight for the rights of those invested in Avangrid. If you are seeking justice and clarity regarding your investment, we urge you to connect with us."

How to Get Involved

Shareholders who wish to know more about their potential involvement in this class action are invited to visit Monteverde & Associates’ website or contact their office directly. The consultations are free, and there is no obligation for those who choose to engage.

This class action marks a pivotal moment for shareholders of Avangrid, as it seeks to uphold their rights and ensure fair treatment during significant corporate transitions. As this story develops, it will be crucial to monitor progress in the case and its implications for shareholders and similar future situations in the securities market.