A law office recently announced that an energy firm reached a pending securities class action settlement with its shareholders.
Law firm Robbins Geller Rudman and Dowd, LLP, explained that the litigation filed in the U.S. District Court for the Dallas Division of the Northern District of Texas against Kosmos Energy, Ltd., has a pending settlement. If approved, the deal would provide shareholders with $10.2 million in cash. This includes all shareholders who took part in the company's initial public offering and acquired stock during the class period between May 10, 2011, and Jan. 10, 2012.
Judge Jane Boyle will conduct a hearing on the matter on Sept. 24, 2014 in order to determine if the settlement is fair to all parties, the plan of allocation is reasonable and how much the lead plaintiff's expenses and attorneys' fees should be.
Shareholders who have not yet received the proof of claim and release form, as well as the notice of pendency and proposed settlement of class action, need to speak with the claims administrator. This is due to the person who holds interests in the company having their rights potentially affected by the decision. There is further information on the settlement website.
Those who want to be a part of the settlement class need to send in the proof of claim and release form by Aug. 18, 2014. Any shareholders who fail to do this will be bound by the court's decision, but will not be able to collect.
If stockholders are looking to exclude themselves from being a part of the settlement class, it is important to request this and sent out the documentation by July 3, 2014. Objections should be given to the court by the same date.
Lawsuit filed in 2012
A law firm initially filed the securities class action lawsuit two years ago due to allegations of securities law violations.
Gilman Law, LLP, filed the litigation against Kosmos Energy's directors and officers for the class period between May 16, 2011, and Nov. 10, 2011, in a Texas state court.
Specifically, the lawsuit alleged that the leaders of Kosmos Energy issued a number of statements that were either false or misleading regarding the financial conditions and operations of the Jubilee oil field project, located in Ghana. This was due to issues related to the wells' defects and lack of revenue.