Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against SandRidge
NEW YORK -- December 05, 2012
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/sandridge/) today announced that a class action
has been commenced in the United States District Court for the Western
District of Oklahoma on behalf of all persons or entities who purchased the
securities of SandRidge Energy, Inc. (“SandRidge” or the “Company”) (NYSE: SD)
between February 24, 2011 and November 8, 2012 (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 plaintiffs’
counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. 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/sandridge/. 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 SandRidge and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. SandRidge, together with
its subsidiaries, operates as an independent natural gas and oil company in
the United States. The Company engages in the exploration, development, and
production of oil and gas properties.
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company’s operational
status and financial projections. Specifically, according to the complaint,
defendants misrepresented and/or failed to disclose the following adverse
facts, among others: (a) that they had been overstating the value of
SandRidge’s Mississippian formation assets throughout the Class Period as
contrary to their repeated mantra that SandRidge had successfully transformed
itself from a primarily natural gas to a primarily oil producing company, when
in reality its Mississippian formation assets consisted of significantly
higher low-margin natural gas deposits and significantly lower high-margin oil
deposits than the market had previously been led to believe; (b) mechanical
issues with one of three rigs the Company needed to drill in its new Gulf of
Mexico assets acquired in the Dynamic Offshore Resources LLC acquisition in
early 2012 rendered that rig inoperable during the second quarter of 2012,
requiring that defendants ramp down drilling in the Gulf of Mexico; (c) that
contrary to their Class Period statements, defendants intended that the $1.3
billion Dynamic Offshore acquisition be utilized as a “financing vehicle” for
the Company’s onshore drilling projects; and (d) that as a result, defendants
knew SandRidge’s fiscal year 2012 earnings guidance was not attainable.
The Complaint further alleges that defendants shocked the market between
November 8, 2012, after the close of trading, and November 9, 2012, before the
opening of trading, by disclosing that they had been grossly overstating the
proportion of oil-producing versus natural gas producing assets in the
Company’s Mississippian formation throughout the Class Period. Defendants also
disclosed that they intended to sell the remaining interest in the Company’s
Permerian Basin assets, though those assets were the Company’s highest-margin
oil producing assets.
On this news, SandRidge’s stock fell precipitously from its November 8, 2012
closing price of $6.10 per share to close at $5.51 per share on November 9,
2012, or 9%, on extremely high volume of more than six times the average
daily trading volume over the prior three month period.
Plaintiffs seek to recover damages on behalf of all purchasers of SandRidge
securities during the Class Period (the “Class”). Plaintiffs are represented
by Robbins Geller, which has expertise in prosecuting investor class actions
and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries and has been ranked
number one in the number of shareholder class action recoveries in MSCI’s Top
SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s
recoveries have averaged 35% above the median for all firms over the past
seven years (2005-2011). Please visit http://www.rgrdlaw.com for more
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
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