This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bernstein Liebhard LLP Announces That A Securities Class Action Lawsuit Has Been Filed Against Kosmos Energy, Ltd.

NEW YORK, July 20, 2012 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a securities class action lawsuit has been commenced in the United States District Court for the Northern District of Texas on behalf of a class (the "Class") of purchasers of Kosmos Energy, Ltd. (NYSE: KOS) ("Kosmos" or the "Company") common stock pursuant and/or traceable to the initial public offering on or about May 12, 2011 (the "IPO") through November 10, 2011.

(Logo: http://photos.prnewswire.com/prnh/20120202/MM47134LOGO)

The complaint charges Kosmos, certain of its officers and/or directors and the underwriters of its May 12, 2011 IPO with violations of the Securities Act of 1933. Kosmos is an oil and gas exploration company that focuses its exploration efforts almost entirely on the Jubilee oil field located in deep water off the coast of the Republic of Ghana.

The complaint alleges that in 2007, Kosmos entered into partnership with several other gas exploration companies to share the costs of developing the Jubilee oil field.  Kosmos and its partners agreed to spend over $3.3 billion to develop the Jubilee oil field, which was projected to produce 120,000 barrels of oil per day ("BOPD") by the third quarter of 2011.

On or about April 25, 2011, Kosmos filed with the SEC the Form S-1/A Registration Statement for the IPO.  On or about May 12, 2011, the Prospectus with respect to the IPO, which forms part of the Registration Statement, became effective and 34,518,242 shares of Kosmos common stock (including partial exercise of the over-allotment) were sold to the public at $18.00 per share, thereby raising more than $620 million.

According to the complaint, the Registration Statement and Prospectus were negligently prepared and, as a result, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Specifically, the Registration Statement and Prospectus misstated, at the time of the IPO, the progress the Company had made in developing the Jubilee oil field. The statements in the Registration Statement and Prospectus were materially false because, at the time of the IPO, gross oil production from the Jubilee field was not on track to reach its design capacity of 120,000 BOPD by the third quarter of 2011. Rather, several of the Jubilee oil wells were not producing as expected due to design defects with the oil wells – defects which existed at the time of completion and pre-dated the IPO. These design defects would cost Kosmos hundreds of millions of dollars to remediate, and would keep the Jubilee oil wells from producing as expected for several years. None of this was reported in the Registration Statement and Prospectus.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs