Camber Energy, Inc. (CEI) Misled Investors Regarding its Business Prospects
A class action was filed on behalf of all persons and entities that purchased Camber Energy, Inc. (NYSE: CEI) securities between February 18, 2021 and October 4, 2021, alleging violations of the Securities Exchange Act of 1934. Camber is an independent oil and natural gas company that acquires, develops, and sells crude oil, natural gas, and natural gas liquids.
According to the complaint, Camber acquired a controlling interest in Viking Energy Group, Inc., a purported independent exploration and production company, in December 2020. In February 2021, Camber executed a definitive merger agreement with Viking to effect the full combination of the two entities.
Throughout the relevant period, Camber failed to timely file required financial statements with the SEC. Further, the complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) Camber overstated the financial and business prospects of Viking as well as the combined company post-Merger; (ii) Camber failed to apprise investors of, and/or downplayed, the fact that its acquisition of a controlling interest in Viking would exacerbate the Company’s delinquent financial statements and listing obligations with the NYSE; and (iii) an institutional investor was diluting Camber’s shares at a significant rate following the Company’s July 12, 2021 update regarding the number of its shares of common stock issued and outstanding.
On October 5, 2021, Kerrisdale Capital reported that the “market is badly mistaken about Camber’s share count and ignorant of [Camber’s] terrifying capital structure,” estimating the Company’s “fully diluted share count is roughly triple the widely reported number.” On this news, Camber’s stock price fell over 50%, to close at $1.53 per share on October 5, 2021.
If you purchased shares of Camber Energy, Inc. (CEI) securities between February 18, 2021 and October 4, 2021, you have until December 28, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.