Shupak v. Reed

A Sempra Energy (Sempra) shareholder filed a stockholder derivative complaint in California Superior Court alleging that officers and directors of Sempra and its subsidiary Southern California Gas Company (SoCalGas) violated their fiduciary duties in connection with the months-long leak from a natural gas storage facility in southern California. The complaint alleged that the leak was the largest methane leak in United States history and that the link had undermined California’s “vaunted program to combat climate change,” “erasing years of the progress made under California’s effort to overhaul its energy industry, a program that has cost consumers tens of billions since 2006.”