Robbins LLP: Jagged Peak Energy Inc. (JAG) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Jagged Peak Energy Inc. (NYSE: JAG) in the District Court, Denver County, State of Colorado. The complaint is brought on behalf of all purchasers of Jagged Peak securities pursuant to the company’s public offering on January 27, 2017 (the “Offering”), for alleged violations of the Securities Act of 1933 by Jagged Peak’s officers and directors. Jagged Peak, an independent oil and natural gas company, focuses on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware basin, a sub-basin of the Permian basin of West Texas.
Jagged Peak Accused of Filing Misleading Registration Statement
According to the complaint, on January 27, 2017, Jagged Peak held the Offering, selling 31,599,334 shares at a price of $15.00 per share, earning approximately $474 million in proceeds. However, Jagged Peak officials issued misleading statements in the registration statement and incorporated offering materials that the company filed with the U.S. Securities and Exchange Commission in support of the Offering. In particular, Jagged Peak presented a highly positive picture of the company’s business, performance, prospects, and acreage, while omitting that many of its wells were positioned in an area where extractability had not been tested, therefore presenting a significant risk that its wells would produce less than other wells in the Southern Delaware Basin. As investors learned of Jagged Peak’s disadvantageous position, Jagged Peak’s stock has fallen approximately 20% since the Offering.
Jagged Peak Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.