SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of SandRidge Energy, Inc. - SD
NEW YORK, Nov. 4, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of SandRidge Energy, Inc. ("SandRidge" or the "Company") (NYSE: SD). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 237.
The investigation concerns whether SandRidge and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On November 3, 2014, the Company announced that "as a result of a routine review by the Securities and Exchange Commission (the "SEC") of its Annual Report on Form 10-K, the Company currently anticipates that its Quarterly Report on Form 10-Q for the third quarter of 2014 will not be filed timely, but, rather, will be completed and filed as soon as possible following the resolution of the SEC's review.
As the Company has disclosed in prior filings, it is party to a 30-year agreement with Occidental Petroleum Corporation ("Occidental") for the delivery by the Company to Occidental of CO2 and the removal of CO2 from the Company's delivered natural gas production. After each calendar year, the Company is obligated to pay a penalty fee to the extent minimum required CO2 delivery volumes are not met.
While the Company historically has accrued a liability for such annual penalty on an annual basis, the Staff (the "Staff") of the Division of Corporation Finance of the SEC recently has requested that the Company reassess that practice and consider whether the liability should be accrued quarterly. As a result of its ongoing dialogue with the Staff some or all of the liabilities associated with the agreement may be required to be shifted to one or more prior periods, which could materially affect the net income of such prior periods. Upon resolution of the matter with the Staff, the Company will restate, to the extent necessary, these financial statements to reflect such shifts. In addition, the Company is reassessing its previous conclusions regarding the effectiveness of internal control over financial reporting and disclosure controls and procedures as they relate to the accounting under the Agreement. 31, 2014, and June 30, 2014 cannot be relied upon until resolution of this matter."
On this news, shares of SandRidge fell $0.22 per share, or more than 5.71%, to $3.59 per share in intraday trading on November 4, 2014.
The Pomerantz Firm, with offices in New York, Chicago, San Diego and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
SOURCE Pomerantz LLP
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