The law firm of Kantrowitz, Goldhamer & Graifman, P.C., announced today that it has filed a class action lawsuit on behalf of purchasers of Linn Energy, LLC (“Linn” or the “Company”) (NASDAQ: LINE) units concerning possible violations of federal securities laws. The action has been filed in the U.S. District Court for the Southern District of New York. Linn is an independent oil and natural gas company that engages in the acquisition and development of oil and natural gas properties.
Through a series of articles, Barron's described the Company as “the country's most overpriced large energy producer,” for using non Generally Accepted Accounting Principles ("GAAP") accounting to mask considerable weakness in its distributable cash flows and calling into question the sustainability of its dividend. Further, Barron’s questioned the Company’s accounting for its derivative contracts by, for example, excluding the cost of its puts from its cash flow, while including the gains.
Then, on July 1, 2013, Linn disclosed that the Securities and Exchange Commission commenced an informal investigation in connection with the Company's hedging strategies, use of non-GAAP financial measures, and that the Commission was looking into its pending acquisition of Berry Petroleum Company. Upon this news, units of Linn’s units fell to their lowest price in three years by Friday July 5, 2013, from a close of $33.29 per unit on July 1, 2013, to a low of $21.23 early Friday, on heavy trading volume.
If you own units of Linn and would like to discuss this action, or if you have any questions concerning your legal rights or interests, please contact: Gary S. Graifman, Esq., at Kantrowitz, Goldhamer & Graifman, P.C., toll-free at 1-800-660-7843 or via email at
email@example.com or by writing to Kantrowitz, Goldhamer & Graifman, 747 Chestnut Ridge Road, Chestnut Ridge, New York 10977. The Kantrowitz, Goldhamer & Graifman, P.C. firm has significant experience successfully prosecuting complex securities fraud class actions on behalf of defrauded investors.
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