PHILADELPHIA, Dec. 15, 2005 – LAWFUEL – The Law News Network – The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Western District of Louisiana, on behalf of purchasers of the common stock of Stone Energy Corporation (“Stone Energy” or the “Company”) (NYSE:SGY) between June 17, 2005, through October 6, 2005, inclusive (the “Class Period”).
The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in filings with the Securities and Exchange Commission and press releases during the Class Period. Specifically, defendants failed to disclose and misrepresented the following adverse facts that: (i) Stone Energy was materially overstating its financial results by overvaluing its oil reserves through improper and aggressive reserve methodologies; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (iii) as a result of the foregoing, the values of the Company’s proven reserves, assets and future net cash flows were materially overstated at all relevant times.
On October 6, 2005, Stone Energy issued a press release announcing that it intends to take a significant reserve write-down, among other things. On this news, the price of Stone Energy stock fell $7.93 per share, or almost 14%, to close at $48.14 per share. Then, on November 8, 2005, Stone Energy issued a press release announcing that it will restate its financial statements for the periods from 2001 to 2004 and for the first six months of 2005. As a result of this disclosure, Stone Energy initiated an internal investigation into its reserve practices.
If you purchased Stone Energy securities during the Class Period, you may, no later than January 30, 2006, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Stone Energy securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at [email protected] for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel Robert M. Roseman or Andrew Abramowitz toll free at (888) 844-5862 or via e-mail at [email protected] For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
Spector, Roseman & Kodroff P.C.
Robert M. Roseman