Robbins Arroyo LLP: Teekay Corporation (TK) Misled Shareholders According to a Recently Filed Class Action

Shareholder rights law firm Robbins Arroyo LLP announces
that a class action complaint was filed against Teekay Corporation
(NYSE: TK) in the U.S. District Court for the District of Connecticut.
The plaintiff brings the complaint on behalf of all purchasers of Teekay
common stock between June 30, 2015 and December 17, 2015, for the
alleged violations of the Securities Act of 1934 by Teekay's officers
and directors. Teekay primarily provides crude oil and gas marine
transportation services in Bermuda and internationally. It gets the
majority of its cash flow from the distributions paid by its master
limited partnerships ("MLPs"), Teekay LNG Partners LP ("TGP") and Teekay
Offshore Partners LP ("TOO").

View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/teekay-corporation

Teekay Accused of Misleading the Market About its Financial
Condition

According to the complaint, on June 30, 2015, Teekay released its
financial results for the second quarter 2015, announcing that it was
increasing its dividend to $0.55 per share—a 75% increase. Then, on
August 7, 2015, a Teekay official stated in an earnings call with
analysts that its new dividend policy equates to an annualized dividend
of $2.20 per share with future increases linked to the growing dividend
cash flows it received from TGP and TOO. On November 6, 2015, Teekay
held another earnings call with analysts, stating that it expected its
dividend to further grow by an average of 15% to 20% per year for at
least the next three years. However, the complaint alleges that these
statements were misleading because the company knew, based on the facts
at that time, that it could not support future dividend payments in
excess of $0.55 per share, and the cash flows from the company's MLPs
could not possibly sustain such high dividends. Further, the company
certainly could not increase the dividend in the years ahead.

On December 16, 2015, a mere month after Teekay made the above
statements, the company issued a press release announcing that the Board
of Directors had approved a plan to reduce the company's quarterly
dividend by 90%—from $0.55 per share to just $0.055 per share,
commencing with the fourth quarter of 2015 dividend payable in February
2016. On this news, Teekay stock declined 58%, closing at $7.27 per
share on December 17, 2015.

Teekay Shareholders Have Legal Options

Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Darnell R. Donahue at
(800) 350-6003, DDonahue@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160310006638/en/

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