Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Delta Petroleum Corp. (“Delta Petroleum” or “DPTRQ”) (OTC: DPTRQ) related to potential securities violations between November 9, 2010 and November 9, 2011 (the “Class Period”). If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you. In a recently filed federal class action complaint, Delta Petroleum’s officers and directors were charged with violating the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants’ made false and/or misleading statements and/or failed to disclose that: (1) Delta Petroleum was not adequately reserving for its dry hole costs and impairments in violation of GAAP, causing its financial results to be materially misstated; (2) Delta Petroleum’s unproductive assets would hinder its ability to find a buyer for itself or its assets as the value of Delta Petroleum’s assets was less than the value of its aggregate debt; and (3) Delta Petroleum had far greater exposure to liquidity concerns than it had previously disclosed. The complaint further alleges that on December 16, 2011, Delta Petroleum announced that it had filed for Chapter 11 Bankruptcy shortly after reporting a net loss of approximately $429 million. As a result of the alleged false statements and omissions, the complaint alleges that Delta Petroleum stock traded at artificially inflated prices during the Class Period, which then dropped 94% from their Class Period high after these revelations reached the market.
According to shareholder rights attorney Willie Briscoe, “The recent revelations about Delta Petroleum’s alleged misrepresentations regarding its business and financial status are particularly troubling. This has led our firms to investigate possible breaches of fiduciary duties and other violations of state law by Delta Petroleum’s officers and directors. Based on our investigation, we are prepared to institute litigation to preserve the company and the value of Delta Petroleum’s stock for all shareholders.”The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters. Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.