Robbins Umeda LLP Announces the Filing of a Class Action Suit Against
Certain Officers and Directors of Delta Petroleum Corporation
SAN DIEGO -- May 02, 2012
Shareholder rights firm 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
(Pink Sheets: DPTRQ) ("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
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 firstname.lastname@example.org, 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. For more information, please go
Press release link:
Attorney Advertising. Past results do not guarantee a similar outcome.
Robbins Umeda LLP
Gregory E. Del Gaizo
619-525-3990 or Toll Free 800-350-6003
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