Robbins LLP is Investigating the Allegations that Next Bridge Hydrocarbons, Inc. Made False and Misleading Statements in its Registration Statement Relating to the Spin-Off of its Oil and Gas Assets
Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons or entities that acquired shares of Next Bridge Hydrocarbons, Inc. in connection with the Company’s spin-off from Meta Materials Technologies Inc. (NASDAQ: MMAT) on around December 15, 2022.
The Allegations
According to the complaint, Next Bridge arose out of a company named Torchlight Energy Resources, Inc. Torchlight was an oil and gas company. In June 2021, Torchlight merged into Meta Materials Inc. In connection with the merger, legacy Torchlight shareholders received shares of non-voting Meta Materials preferred stock (the “Preferred Stock”). The Preferred Stock corresponded to the oil and gas assets that Meta Material acquired from Torchlight during the merger. Holders of the Preferred Stock would be entitled to receive either proceeds from the sale of the oil and gas assets or, if the assets were not sold by a certain date, equity in a spin-off entity created to take ownership of the assets. Meta Materials did not sell the legacy Torchlight oil and gas assets and, consequently, proceeded with spinning off the oil and gas assets into Next Bridge. On December 14, 2022, Meta Materials completed the spin-off of the oil and gas assets and, as a result, holders of Meta Materials’ Preferred Stock received new shares in Next Bridge pursuant to the Registration Statement (the “Spin-Off”).
Plaintiff alleges that the Registration Statement was negligently prepared and contained false statements of material fact relating to the value of the Company’s oil and gas assets and Next Bridge’s transactions with related parties.
What Now: You may be eligible to participate in the class action against Next Bridge Hydrocarbons, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by May 14, 2024. A lead plaintiff is a representative party who acts 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.
