Brooge Energy Limited (BROG) Engaged in Fraudulent Practices According to SEC
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Brooge Energy Limited (NASDAQ: BROG) stock between November 25, 2019 and December 21, 2023. Brooge Energy Limited, through its subsidiaries, provides oil storage and related services at the Port of Fujairah in the United Arab Emirates.
According to the complaint, during the class period, defendants failed to disclose that: (1) Brooge materially overstated its revenues because it never received any revenues from A1 Brooge International Advisory LLC (“BIA”), as well as another fictitious customer; (2) Brooge engaged in a complex pattern of payments with BIA to create the illusion of revenues from BIA and another customer that had no knowledge of the fraud; (3) Brooge intentionally lied to its auditors and the SEC about its fraudulent activities; and (4) Brooge lacked internal controls.
On December 22, 2023, the SEC posted a release on its website entitled “SEC Charges UAE-Based Brooge Energy and Former Executives with Fraud.” Attached to this release was an order instituting cease-and-desist proceeding, which detailed the alleged fraudulent activity. On this news, the price of Brooge stock declined by $0.62, or 15.66%, to close at $3.34 on December 22, 2023. The next trading day, it fell by a further $0.37, or 11.08%, to close at $2.97 on December 26, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Brooge Energy Limited. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by April 5, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
