Milberg LLP announces that it has filed a class action against LinnCo, LLC (“LinnCo”) (Nasdaq: LNCO), certain of LinnCo’s officers and directors, and the underwriters involved in LinnCo’s initial public offering (IPO) on October 12, 2012. The class action was filed of behalf of investors who purchased LinnCo shares in or traceable to LinnCo’s IPO on October 12, 2012 to July 1, 2013 (the “Class Period”), and seeks damages for defendants’ false and misleading statements in the Registration Statement and Prospectus filed with the SEC for the IPO.
Milberg LLP has created a website ( http://www.linncolawsuit.com/) that seeks to answer common questions about shareholder class actions.
As alleged in the complaint, LinnCo is a Delaware limited liability company whose sole purpose is to own units representing limited liability company interests (“units”) in Linn Energy, LLC (“Linn”), an independent natural gas exploration and production company whose units trade on NASDAQ under the symbol “LINE.”
Barron’s questioned Linn’s aggressive accounting practices in two articles. Among other things, Barron’s criticized Linn for concealing considerable weakness in its distributable cash flows, thus calling into question the sustainability of its dividend. Barron’s questioned Linn’s accounting for its derivative contracts by excluding the cost of its puts from its cash flow, while including the gains.On July 1, 2013, Linn and LinnCo disclosed that the SEC had opened an informal inquiry into LinnCo’s proposed merger with Berry, and Linn and LinnCo’s hedging strategies and use of non-GAAP financial measures (the same accounting issues for which Linn and LinnCo had been criticized by Barron’s). On this news, LinnCo shares dropped $10.12 per share, or 27.3%, within two trading sessions, to close at $26.95 per share on July 3, 2013. If you purchased LinnCo shares between October 12, 2012, to July 1, 2013, you may, no later than September 9, 2013, request that the Court appoint you lead plaintiff. A lead plaintiff is a class member that directs the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel.