Reconnaissance Energy Africa Ltd. (RECAF) Sued for Multiple Misrepresentations
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired securities of Reconnaissance Energy Africa Ltd. between February 28, 2019 and September 7, 2021. The complaint seeks to recover damages pursuant to the Securities Exchange Act of 1934. ReconAfrica purports to engage in the identification, exploration, and development of oil and/or gas assets in Namibia and Botswana.
According to the complaint, during the relevant period, defendants made false and/or misleading statements and/or failed to disclose: (1) ReconAfrica’s plan for using unconventional means for energy extraction (including fracking) in the fragile Kavango area; (2) that ReconAfrica would begin unlicensed drilling tests; (3) that ReconAfrica would illegally use water for well testing; (4) that ReconAfrica would illegally store used water in unlined pools; (5) that ReconAfrica would skirt Namibian law and hire an inadequate and inappropriate consultant; (6) that, as a result, ReconAfrica risked future well, drilling, and water-related licenses in Namibia and Botswana; (7) that, as opposed to its representations, ReconAfrica did not reach out or provide adequate information (including in relevant local languages) through accessible means to those to be impacted by its testing and potential energy extraction; (8) that ReconAfrica’s interests are in the Owambo Basin, not the co-called Kavango Basin; (9) that ReconAfrica has continuously engaged in stock pumping; and (10) as a result, defendants’ public statements were materially false and/or misleading.
On September 7, 2021, Viceroy published a report entitled “ReconAfrica – Another swing, another miss: Despite significant polish, Netherland Sewell’s presentation on ReconAfrica’s 6-2 well is another set of disappointing results.” The article noted: “[t]he 6-2 well is effectively a failure…” and that “[ReconAfrica] are committed to drip-feeding overly positive press releases in the hope of boosting their share price.” On this news, the Company’s stock fell almost 12%, to close at $4.64 per share on September 7, 2021.
If you purchased shares of Reconnaissance Energy Africa Ltd. (RECAF) between February 28, 2019 and September 7, 2021, you have until December 27, 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.