National Grid Faces Class Action Lawsuit Over Misleading Information, Shares Drop 5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Class Action Initiation: Rosen Law Firm is investigating potential securities claims against National Grid for possibly issuing misleading business information, indicating a strong investor concern regarding the company's transparency and accountability.
- Stock Price Reaction: On July 2, 2025, National Grid's American Depositary Shares (ADSs) fell 5% following reports that a fire at Heathrow Airport was caused by the company's failure to maintain an electricity substation, reflecting market worries about management and safety issues.
- Regulatory Investigation: The UK Energy Minister expressed deep concern over the report, which revealed that the issue leading to the fire was identified seven years prior but left unaddressed, potentially leading to stricter regulatory scrutiny that could impact National Grid's operations and reputation.
- Legal Counsel Advisory: Rosen Law Firm emphasizes the importance of selecting experienced legal counsel in securities class actions, suggesting that having the right representation can significantly influence investor compensation outcomes and enhance confidence in the legal process.
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About NGG
National Grid plc is a United Kingdom-based energy company. The Company's principal activities involve the transmission and distribution of electricity in Great Britain and of electricity and gas in the northeastern United States. Its segments include UK Electricity Transmission, UK Electricity Distribution, New England, New York and National Grid Ventures. The UK Electricity Transmission segment includes the high-voltage electricity transmission networks in England and Wales. The UK Electricity Distribution segment includes electricity distribution networks of NGED in the East Midlands, West Midlands and South West of England and South Wales. The New England segment includes electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New England. The New York segment includes electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New York.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
