Robbins Arroyo LLP: Southwestern Energy Company (SWN, SWNC) Misled Shareholders According to a Recently Filed Class Action
November 03 2016 - 4:48PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Southwestern Energy
Company (NYSE: SWN, SWNC) in the District Court of Harris County,
Texas. The complaint is brought on behalf of all purchasers of
Southwestern securities pursuant to the company's January 15, 2015,
convertible preferred stock offering (the "Offering"), for alleged
violations of the Securities Act of 1933 by Southwestern's officers
and directors. Southwestern, an independent natural gas and oil
company, explores for, develops, and produces natural gas and oil
primarily in the United States.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/southwestern-energy-company
Southwestern Accused of Misstating Its Debt Problems
According to the complaint, on January 15, 2015, Southwestern
conducted the Offering, selling 30 million depositary shares at a
price of $50 per share, and gaining net proceeds of $1.672 billion.
Southwestern's Registration Statement, filed with the U.S.
Securities and Exchange Commission in support of the Offering,
stated that the company's long-term outlook for the business is
favorable and that its resource base, financial strength, and
disciplined capital would provide the company with an opportunity
to grow through new exploration and development activities.
However, the complaint alleges that the Registration Statement
Southwestern issued contained misleading statements and omitted
material information. Specifically, the company failed to disclose
that it was experiencing severe liquidity and debt issues that
threatened its ability to continue its drilling activities.
Approximately one year after the Offering, on January 21, 2016,
Southwestern revealed in a letter to the Texas Workforce Commission
that it would lay off 376 employees at its Spring, Texas office, a
strategy that was part of the company's larger workforce reduction
plan to cut 1,100 positions. Then, on February 25, 2016, the
company reiterated its "decision to temporarily halt its drilling
activities." On June 9, 2016, Southwestern announced that it sold
55,000 net acres of land in West Virginia for $450 million due to
its looming debt obligations. Southwestern's depositary shares
(SWNC) have plummeted nearly 53% since the Offering, closing at
$23.54 per share on November 1, 2016.
Southwestern Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161103006813/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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