COLCHESTER, Conn., Nov. 19, 2007 LAWFUEL – The Legal Newswire — On November 13, 2007, Scott+Scott, LLP, filed a class action against FX Energy, Inc.
(“FX Energy” or the “Company”) (Nasdaq:FXEN) and certain officers and directors in the U.S. District Court for the District of Utah. The action is on behalf of FX Energy common stock purchasers during the period March 30, 2004, through January 5, 2006, inclusive (the “Class Period”), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company’s business and operations and that, as a result, the price of the Company’s securities was inflated during the Class Period, thereby harming investors.
If you purchased FX Energy stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than January 18, 2008. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. An incorrect date for the lead plaintiff deadline was communicated in an earlier press release issued by a law firm not authorized to act as counsel in the filed action. If you wish to discuss this action or have questions concerning this notice or your rights, please contact
Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or
visit the Scott+Scott website, http://www.scott-scott.com, for more information. There is no cost or fee to you.
FX Energy operates an independent oil and gas exploration and production company. It engages in the exploration, development, and production of oil and gas in the Republic of Poland and the United States. According to the complaint, during the Class Period, defendants made false and misleading statements regarding oil and gas reserve estimates in the Company’s exploration areas located in the western part of Poland in a geological zone known as the Permian Basin. As late as July 2005, the Company reiterated overly aggressive and objectively baseless claims of gas reserve estimates, exceeding one trillion cubic feet of gas in its various finds.
On December, 20 2005, the Company began to communicate lowered expectations and estimates for its yet undrilled wells. Finally, on January 4, 2006, the Company’s CEO admitted to its prior false and misleading interpretations of the available data, resulting in new “estimates” for oil and gas reserves that were orders of magnitude less than those disclosed during the Class Period. As a result of the shocking news, the price of FX Energy stock plunged more than 26.5%, falling from $8.26 per share on January 4, 2006, to close at $6.07 per share on January 5, 2006, for a loss of $2.19 per share on heavy volume of 3.9 million shares, more than ten times average trading volume.
The plaintiff is represented by Scott+Scott, a law firm with significant experience in prosecuting investor class actions. Please visit our website at www.scott-scott.com for current information on the litigation of major securities, antitrust, employment and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca