Robbins Umeda LLP Announces the Filing of a Class Action Suit Against Certain Officers and Directors of Delta Petroleum Corporation
Robbins Umeda LLP announces the filing of a federal securities class action by an investor in the U.S. District Court for the District of Colorado on behalf of purchasers of Delta Petroleum Corporation (Pinksheets: DPTRQ.PK) (“Delta Petroleum” or the “Company”) shares between November 9, 2010 and November 9, 2011 (the “Class Period”).
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the company’s business, operations, and future prospects. In particular, the complaint alleges that defendants misrepresented and/or failed to disclose that: (a) the Company was not adequately reserving for its dry hole costs and impairments in violation of Generally Accepted Accounting Principles, causing its financial results to be materially misstated; (b) Delta Petroleum’s unproductive assets would hinder its ability to find a buyer for itself or its assets, as the value of the Company’s assets was less than the value of its aggregate debt; and (c) the Company had far greater exposure to liquidity concerns than it had previously disclosed.
On November 9, 2011, Delta Petroleum reported a net loss of $429.4 million, or $15.40 diluted earnings per share, for the quarter ended September 30, 2011, primarily due to costs associated with drilling dry holes. The Company additionally provided an update on its strategic alternatives process, advising that the Company had not received any offers to purchase the Company or its assets, and as a result, Delta Petroleum would be forced to restructure its debt or otherwise seek protection under Chapter 11 of the U.S. Bankruptcy Code if the restructuring was unsuccessful. On this news, Delta Petroleum stock collapsed $1.34 per share to close at $0.71 per share on November 10, 2011, a one-day decline of 65% on volume of nearly 4.5 million shares.
Thereafter, on December 16, 2011, Delta Petroleum announced that it, along with its affiliates, had filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court.
If you purchased or otherwise acquired Delta Petroleum during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than June 18, 2012. To discuss your shareholder rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003, via email at info@robbinsllp.com, or via the shareholder information form.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
