Faruqi & Faruqi, LLP Encourages Investors Who Suffered Substantial Losses Investing In Lone Pine Resources, Inc. To Contact The Firm Before the September 4, 2012 Deadline
NEW YORK, Aug. 14, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities violations at Lone Pine Resources, Inc. ("Lone Pine" or the "Company") (NYSE: LPR).
The investigation focuses on whether Lone Pine and its executives violated federal securities laws by filing a false and misleading registration statement and prospectus in connection with the Company's May 26, 2011 initial public offering (the "IPO"). Specifically, on May 26, 2011, Lone Pine sold 15,000,000 shares of the Company's common stock at $13.00 per share for total proceeds of $195 million.
However, on August 2, 2011, Lone Pine disclosed that its financial results for the second quarter of 2011 were "negatively affected by a sales pipeline disruption in the Evi area in late April  that required volumes to be trucked to market" and that the "Evi area was impacted by a large forest fire in Mid-May ." Neither the April Evi pipeline disruption nor the mid-May fire were disclosed in the registration statement or prospectus in connection with the IPO. As a result of this news, the Company's stock plummeted over the next several days and closed at $9.21 per share on August 11, 2011, a decline of approximately 30% on high trading volume.
On August 14, 2012 Lone Pine's share price declined by 37% after the Company released a very disappointing Form 8-K. The Form 8-K revealed that "Lone Pine's adjusted EBITDA earnings for the second quarter of 2012 of $27.1 million was 18% lower than the corresponding 2011 period and adjusted discretionary cash flow for the second quarter of 2012 of $18.7 million was 40% lower than the corresponding 2011 period. The decrease in each of these amounts was primarily attributable to declines in natural gas sales volumes combined with the significant decrease in natural gas and crude oil realized prices in the period." Further, "Net loss for the second quarter of 2012 was impacted by the non-cash effect of a ceiling test write-down of $128.9 million before tax ($96.8 million after tax)".
Request more information now by clicking here: www.faruqilaw.com/LPR
If you purchased Lone Pine securities in connection with the Company's May 26, 2011 IPO and would like to discuss your legal rights, visit www.faruqilaw.com/LPR. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Lone Pine's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP
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