WASHINGTON, Dec. 9 – LAWFUEL – The Law News Network – Klafter & Olsen LLP has been retained to commence a securities fraud class action against Stone Energy Corp. (“Stone Energy”) (NYSE: SGY) and certain of its officers in the U.S. District Court
for the Western District of Louisiana on behalf of investors who purchased the
publicly traded securities of Stone Energy during an expanded period beginning
March 9, 2005 through and including October 5, 2005 (the “Class Period”). As
described below, if you purchased Stone Energy publicly traded securities
during the Class Period, you have until January 30, 2006 to move to be
appointed as a Lead Plaintiff.
Stone Energy is an oil and gas company engaged in the acquisition,
exploration, development, operation and production of oil and gas properties.
In its Form 10-K filed with the SEC on March 9, 2005, for its year ended
December 31, 2004, Stone Energy claimed to have proved oil and gas reserves of
approximately 825 billion cubic feet equivalent (Bcfe). Before the opening of
the market on October 6, 2005, however, Stone Energy revealed its proven
reserves as of December 31, 2004 had been overstated by 161 Bcfe or 20% less.
On the announcement of this significant overstatement, Stone Energy stock
plunged by $7.93 to close at $48.14 on October 6.
On November 8, 2005, Stone Energy announced that as a result of its
overstatement of proven reserves, it will be filing an amended Form 10-K for
2004 and amended quarterly reports for its quarters ended March 31, 2005 and
September 30, 2005. On November 10, Stone Energy announced that the SEC is
conducting an informal inquiry into its restatement of its proven reserves.
Most significantly, on December 5, Stone Energy announced the results of an
investigation into its proven reserve overstatement, which found, among other
things, that “there was an optimistic and aggressive ‘tone from the top’ with
respect to estimating reserves;” Stone management had failed to “fully grasp”
the SEC’s requirements for booking reserves; and that Stone Energy “lacked
adequate internal guidance and training” on the SEC standards for booking
Klafter & Olsen LLP seeks to recover damages on behalf of purchasers of
Stone Energy securities during the Class Period for violations of the federal
securities laws by Stone Energy and certain of its officers as a result of its
public dissemination of false and misleading proven oil and gas reserves. No
class has yet been certified in the above action.
If you purchased Stone Energy’s publicly traded securities during the
Class Period (March 9, 2005 – October 5, 2005) and you have sustained losses
on those purchases, you may, no later than January 30, 2006, move to be
appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party
that acts on behalf of other class members in directing the litigation.
Please contact Klafter & Olsen LLP at http://www.klafterolsen.com or call us
at 202/261-3553 for a more thorough explanation of the Lead Plaintiff
selection process and the claims that can be asserted against Stone Energy.
Klafter & Olsen LLP has extensive expertise in prosecuting investor class
actions involving financial fraud and has offices in Washington D.C. and New
York. Please visit our website for more information about the Firm.