Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Former Executives of Canadian Superior Energy Inc.
December 09 2009 - 8:00PM
Business Wire
Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin
Stoia”) (http://www.csgrr.com/cases/canadiansuperior/) today
announced that a class action has been commenced in the United
States District Court for the Southern District of New York on
behalf of purchasers of the common stock of Canadian Superior
Energy Inc. (“Canadian Superior” or the "Company") (AMEX:SNG)
between January 14, 2008 and February 17, 2009, inclusive (the
“Class Period”), seeking to pursue remedies under the Securities
Exchange Act of 1934 (the “Exchange Act”). Canadian Superior is not
named in this action as a defendant as it sought protection under
Canadian bankruptcy and reorganization laws and has since
reorganized.
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or
619/231-1058, or via e-mail at djr@csgrr.com. If you are a member
of this Class, you can view a copy of the complaint as filed or
join this class action online at
http://www.csgrr.com/cases/canadiansuperior/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges certain of Canadian Superior’s former
executives with violations of the Exchange Act. Canadian Superior
engages in the exploration for, acquisition, development, and
production of petroleum and natural gas, and liquefied natural gas
projects primarily in western Canada, offshore Nova Scotia,
offshore Trinidad and Tobago, the United States, and North
Africa.
The complaint alleges that, throughout the Class Period,
defendants failed to disclose material adverse facts about the
Company’s true financial condition, business and prospects. On
August 16, 2007, Canadian Superior and Challenger Energy jointly
issued a press release announcing that BG International Limited
(“BG”) entered into a farm-in agreement (“Farm-In Agreement”) and
joint operating agreement (“Joint Operating Agreement”) with
Canadian Superior to participate in the exploration drilling and
development of the Intrepid Block 5(c) (the “Joint Venture”).
Specifically, the complaint alleges that defendants failed to
disclose: (i) that the discovered reserves for Intrepid Block 5(c)
were below the economic threshold for development; (ii) that
Canadian Superior had notified BG of its intention to commence a
corporate sale in November 2008 so that it could overcome the
financial constraints that were preventing it from meeting its
funding obligations under the Joint Operating Agreement; (iii) that
Canadian Superior had violated the terms of the Joint Operating
Agreement with BG, thus potentially endangering its interest in the
Joint Venture; (iv) that Canadian Superior failed to timely pay
Maersk, the drilling operator, and potentially other contractors,
thereby jeopardizing the operation of the Joint Venture; and (v) as
a result of the foregoing, defendants lacked a reasonable basis for
their positive statements about the Company, its prospects and
earnings growth.
On February 12, 2009, Canadian Superior issued a press releasing
announcing the “appointment, upon the application of BG of an
interim Receiver of its participating interest in Intrepid Block
5(c). Pursuant to the Court Order, the Receiver, in conjunction
with BG, will operate the property and conduct the flow testing of
the Endeavour well which Canadian Superior believes will validate
its operations to date.” In response this announcement, shares of
the Company’s stock fell $0.40 per share, or 44%, from a close of
$0.90 per share on February 11, 2009, the last trading date before
the announcement, to close at $0.50 per share, on extremely heavy
trading volume.
On February 17, 2009, Canadian Superior announced that it had
received a demand letter from the Canadian Western Bank for
repayment of all amounts outstanding under Canadian Superior’s $45
million credit facility with the bank by February 23, 2009. The
Company also announced that it was in discussions with alternative
lenders. In response to this announcement, shares of the Company’s
stock fell $0.16 per share, or 30%, from a close of $0.54 per share
on February 13, 2009, the last trading date before the
announcement, to close at $0.38 per share, on extremely heavy
trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers
of Canadian Superior common stock during the Class Period (the
“Class”). The plaintiff is represented by Coughlin Stoia, which has
expertise in prosecuting investor class actions and extensive
experience in actions involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Philadelphia and Atlanta, is active in major litigations pending in
federal and state courts throughout the United States and has taken
a leading role in many important actions on behalf of defrauded
investors, consumers, and companies, as well as victims of human
rights violations. The Coughlin Stoia Web site
(http://www.csgrr.com) has more information about the firm.
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