NEW YORK, May 11, 2016 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against Cobalt International Energy, Inc. ("Cobalt" or "the Company") (NYSE: CIE). The class action has been filed on behalf of a class consisting of all persons or entities who purchased Cobalt after its officials breached their fiduciary duties by making misleading statements about the existence of oil in two of the company's major wells located offshore of Angola.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
Cobalt and its subsidiaries, are involved in the exploration and production of oil-focused, below-salt exploration prospects, and concentrates on off-shore drilling in Angola.
The Complaint alleges that Cobalt's filings with the U.S. Securities and Exchange Commission (the "SEC") suggested that its offshore Angolan wells, Lontra and Loengo, had substantial amounts of oil that would be profitable for Cobalt. Cobalt described the Lontra site as "large," "oil-focused," and "high impact," and hyped the wells over the course of 2013 through press releases and investor updates. The complaint continues to describe that the Lontra well had a large amount of gas and Cobalt lacked the rights, and Loengo's well was a "dry hole" with no oil. On December 1, 2013, Cobalt confessed that Lontra contained more gas than it had originally anticipated. Following this news, Cobalt stock dropped roughly 17%, and close at $18.54 per share on December 2, 2013.
Following this news regarding the Lontra well, Cobalt transferred its focus to the Loengo well, and openly stressed its high potential for oil. Nonetheless, shareholders were unaware that Cobalt's former Chief Investment Offer stated that Loengo that there was very little chance of success on that well. On November 4, 2014, Cobalt revealed dismal negative financial results and that its Loengo well had no oil. The complaint alleges that the Cobalt's statements regarding the wells were deceptive and false as Cobalt failed to sufficiently investigate the likelihood oil in the wells and failed to effectively test the wells before making public statements. The complaint also alleges that Cobalt officials, as instructed by executives at one of Cobalt's Angolan partners, postponed revealing that Cobalt had hit a gaseous hydrocarbon column. Additionally, corporate insiders profited from their misleading statements and sold Cobalt shares for personal benefit, obtaining more than $1.33 billion.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website: http://www.bgandg.com/#!cie/rp7c0. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Cobalt you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
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SOURCE Bronstein, Gewirtz & Grossman, LLC