RADNOR, Pa., Dec. 5 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Utah on behalf of all purchasers of securities of FX Energy, Inc. ("FX Energy" or the "Company") from March 1, 2004 through January 5, 2006, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges FX Energy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. FX Energy is an independent energy company with activities concentrated within the upstream oil and gas industry. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the methods used to estimate the Company's potential reserves were flawed and defective; (2) that given the Company's erroneous methodology for determining reserves, the Company's future business prospects were inherently uncertain and unachievable; (3) that the Company's estimated reserve numbers varied by orders of magnitude for the Company's Sroda, Zaniemysl and Winna Gora sites, and that their estimates were lacking in any reasonable basis; (4) that the Company lacked adequate internal controls; and (5) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On December 20, 2005, the Company shocked investors when it reported that its Lugi-1 well was determined to be "uneconomic," and that the well would be plugged and abandoned. The head of the Company's technical team stated that "[u]ntil the well results are better understood, the impact of the well on the major Rusocin -- Lugi pinchout play can not be fully determined." On this news, the Company's shares fell $2.34 per share, or 21.5 percent, to close on December 20, 2005 at $8.55 per share, on unusually heavy trading volume.
Then on January 5, 2006, the Company again shocked investors when it announced that a drill stem test on the Company's Sroda-5 well in western Poland tested gas and brine. Additionally, the Company indicated that additional drilling would need to take place before the commerciality of the well could even be determined. On this news, the Company's shares fell an additional $2.19 per share, or over 26.5 percent, to close on January 5, 2006 at $6.07 per share, also on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than January 18, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts 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 purported 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.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
