Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the District of Colorado on behalf of all persons or entities that purchased the securities of Delta Petroleum Corporation ("Delta Petroleum" or the "Company") (OTC: DPTRQ.PK) between November 9, 2010 and November 9, 2011 (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against certain of the Company's officers (the "Complaint").
If you purchased shares of Delta Petroleum during the Class Period, or purchased shares prior to the Class Period and still hold Delta Petroleum, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott J. Farrell, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to info@rigrodskylong.com, or at: http://www.rigrodskylong.com/investigations/delta-petroleum-corporation-dptrq.
Delta Petroleum, a Delaware corporation headquartered in Denver, Colorado, 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 throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that Delta Petroleum 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. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period, reaching a high of $11.70 per share on February 28, 2011.
The Company announced its third quarter 2011 financial results on November 9, 2011, reporting a net loss of $429.4 million, or $15.40 diluted earnings per share for the quarter ended September 30, 2011. This significant loss was primarily attributed by the to costs associated with drilling dry holes. Further, the Company also disclosed that due to a lack of offers to purchase the Company or its assets, Delta Petroleum would be forced to restructure its indebtedness. Additionally, the Company warned investors that would be forced to seek protection under Chapter 11 of the U.S. Bankruptcy Code should it be unsuccessful in achieving a transaction or transactions addressing its liquidity.
Following this release, stock in Delta Petroleum fell $1.34 per share, closing at $0.71 per share on November 10, 2011, a one-day decline of 65% on heavy trading 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 wish to serve as lead plaintiff, you must move the Court no later than June 18, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
Attorney advertising. Prior results do not guarantee a similar outcome.
Contacts:
Rigrodsky & Long, P.A.
Scott J. Farrell, Esquire
Peter
Allocco
888-969-4242
516-683-3516
Fax: 302-654-9430
info@rigrodskylong.com
http://www.rigrodskylong.com
