Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/delta/) today announced that a class action has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of Delta Petroleum, Inc. ("Delta") (PINK:DPTRQ) publicly traded securities during the period between November 9, 2010 and November 9, 2011 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/delta/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges certain of Delta's officers and directors with violations of the Securities Exchange Act of 1934. Delta is not named as a defendant in the action due to its filing for bankruptcy protection on December 16, 2011. Delta is an independent oil and gas company engaged primarily in the exploration for, and the acquisition, development, production, and sale of, natural gas and crude oil.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, Delta stock traded at artificially inflated prices during the Class Period, reaching a high of $11.70 per share on February 28, 2011.
On November 9, 2011, Delta announced is third quarter 2011 financial results. The Company reported a net loss of ($429.4) million, or ($15.40) diluted earnings per share, for the quarter ended September 30, 2011. The significant loss was due mostly 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 would be forced to restructure its indebtedness. Delta further warned investors that should it be unsuccessful in achieving a transaction or transactions addressing the Company's liquidity, it would be forced to seek protection under Chapter 11 of the U.S. Bankruptcy Code. On this news, Delta 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.
On December 16, 2011, Delta announced that it, along with its affiliates, had filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court.
According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (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'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.
Plaintiff seeks to recover damages on behalf of all purchasers of Delta publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.
Contacts:
Robbins Geller Rudman & Dowd LLP
Darren Robbins, 800-449-4900
or 619-231-1058
djr@rgrdlaw.com
