The Shuman Law Firm announces that all purchasers of the common stock of Lone Pine Resources, Inc. (“Lone Pine” or the “Company”) (NYSE: LPR) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s May 26, 2011 initial public offering (the “IPO”), have until September 4, 2012 to file a motion with the Court to be appointed as Lead Plaintiff. The securities fraud class action lawsuit was filed in the United States District Court for the Southern District of New York.
Lone Pine is an independent oil and gas exploration, development and production company which operates primarily in Canada. The Company’s operations include the Western Canada Sedimentary Basin, including fields in the Deep Basin and the Evi area in the Peace River Arch. The Complaint alleges that the Registration Statement and Prospectus failed to disclose that the Company had already experienced several significant events, which in the Prospectus had only been identified as potential risk factors, including significantly increased costs and disruption in production volumes attributed to a major pipeline rupture in the Evi area in late April 2011 and a large forest fire in the same area in mid-May.
On August 2, 2011, in a press release announcing Lone Pine’s second-quarter 2011 financial results, the Company noted that while the oil price differential realized in second quarter 2011 had increased 15% compared to the first quarter, it was “negatively affected by a sales pipeline disruption in the Evi area in late April that required [oil] volumes to be trucked to market.” Following this news, the price of Lone Pine common stock declined over the next several days almost 30% from the IPO price, closing at $9.21 per share on August 11, 2011.
If you purchased Lone Pine common stock pursuant or traceable to the Company’s May 26, 2011 initial public offering, you may move the Court, no later than September 4, 2012 to serve as Lead Plaintiff; however, you must meet certain legal requirements. A Lead Plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.