Scott+Scott LLP Announces Class Action Lawsuit Against Oilsands Quest Inc. and Others on Behalf of Investors -- BQI
February 24 2011 - 8:22PM
On February 24, 2011, Scott+Scott LLP filed a class action
complaint against Oilsands Quest Inc. ("Oilsands Quest" or the
"Company") (AMEX:BQI) and certain of the Company's officers in the
U.S. District Court for the Southern District of New York. The
action for violations of the Securities Exchange Act of 1934 is
brought on behalf of those purchasing the common stock and other
publicly-traded securities of Oilsands Quest between August 14,
2006 and July 14, 2009, inclusive (the "Class Period"), including
Oilsands Quest's "Exchangeable Shares" offered as consideration for
the minority interest in OQI Sask on August 14, 2006; Oilsands
Quest's "units" first publicly offered on December 5, 2007 at $5.00
per unit; Oilsands Quest common stock shares publicly offered on
December 5, 2007 on a flow-through basis at $6.11 ($6.17 CDN) per
share; and Oilsands Quest's "units" first publicly offered on May
1, 2009 at $0.85 per unit.
If you purchased Oilsands Quest common stock or other Oilsands
Quest securities during the Class Period and wish to serve as a
lead plaintiff in the action, you must move the Court no later than
60 days from today. Any member of the investor class may move
the Court to serve as lead plaintiff through counsel of its choice,
or may choose to do nothing and remain an absent class
member. If you wish to discuss this action or have questions
concerning this notice or your rights, please contact Scott+Scott
(scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit
the Scott+Scott website, http://www.scott-scott.com) for more
information. There is no cost or fee to you.
The complaint filed in the action charges that, during the Class
Period, Oilsands Quest and certain of its officers and directors
overstated the value of the Company's assets by more than $136
million in violation of Generally Accepted Accounting Practices
("GAAP").
As alleged in the complaint, on August 14, 2006, Oilsands Quest
acquired the minority interest in its operating subsidiary, OQI
Sask, that the Company did not already own. The Complaint
alleges that Oilsands Quest's Class Period financial reports and
statements issued thereafter were false and misleading in that: (a)
defendants failed to properly account for Oilsands Quest's
acquisition of the minority interest of OQI Sask in August 2006,
materially overstating the value of OQI Sask throughout the Class
Period; (b) Oilsands Quest's financial statements overstated the
value of the Company's interest in OQI Sask and were presented in
violation of GAAP throughout the Class Period; and (c) contrary to
defendants' Class Period assurances, the Company's internal
controls were inadequate to prevent it from improperly inflating
the value of its assets.
On July 14, 2009, the Company issued a release disclosing that
the Company's FY 2007, FY 2008 and Q-1, Q-2 and Q-3 2009 financial
reports should no longer be relied upon, that its previously issued
financial reports would be restated, and that Oilsands Quest's
internal controls were deficient throughout the Class
Period. Meanwhile, the complaint alleges, as a result of
defendants' false statements, Oilsands Quest's stock price traded
at artificially inflated levels during the Class Period, trading as
high as $6.75 per share on June 23, 2008, but that as the truth
seeped into the market, the Company's shares were hammered by
massive sales, sending them down 87% from their Class Period
high.
Scott+Scott has significant experience in prosecuting major
securities, antitrust and employee retirement plan actions
throughout the United States. The firm represents pension
funds, foundations, individuals and other entities worldwide.
CONTACT: Scott+Scott LLP
(800) 404-7770
(860) 537-5537
scottlaw@scott-scott.com
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