SAN DIEGO--(BUSINESS WIRE)--The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Camber Energy, Inc. (NYSE: CEI) securities between February 18, 2021 and October 4, 2021, inclusive (the “Class Period”) have until December 28, 2021 to seek appointment as lead plaintiff in Coggins v. Camber Energy, Inc., No. 21-cv-03574. Commenced on October 29, 2021 in the Southern District of Texas, the Camber Energy class action lawsuit charges Camber Energy and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff of the Camber Energy securities class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Camber Energy securities class action lawsuit must be filed with the court no later than December 28, 2021.
CASE ALLEGATIONS: In December 2020, Camber Energy acquired a controlling interest in Viking Energy Group, Inc., a purported independent exploration and production company. Then, in February 2021, Camber Energy executed a definitive merger agreement with Viking to effect the full combination of the two entities.
As alleged by the Camber Energy class action lawsuit, throughout 2021, Camber Energy failed to timely file required financial statements with the U.S. Securities and Exchange Commission (“SEC”). As a result, financial reporting services such as Yahoo! Finance and Bloomberg were forced to rely on infrequent and outdated updates in SEC filings to estimate Camber Energy’s shares of common stock issued and outstanding. When Camber Energy provided an update on October 6, 2021, it reported 249.6 million shares of stock issued and outstanding, a significantly higher figure.
The Camber Energy class action lawsuit further alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Camber Energy overstated the financial and business prospects of Viking as well as the combined company post-merger; (ii) Camber Energy failed to apprise investors of, and/or downplayed, the fact that its acquisition of a controlling interest in Viking would exacerbate Camber Energy’s delinquent financial statements and listing obligations with the New York Stock Exchange (“NYSE”); (iii) an institutional investor was diluting Camber Energy’s shares at a significant rate following Camber Energy’s July 12, 2021 update regarding the number of its shares of common stock issued and outstanding; and (iv) as a result, Camber Energy’s public statements were materially false and misleading at all relevant times.
On May 24, 2021, Viking reported that Camber Energy’s first quarter ended March 31, 2021 earnings per share (“EPS”) of -$0.13 under generally accepted accounting principles (“GAAP”), compared to GAAP EPS of $1.39 in the same quarter the year prior, representing an 109.35% decrease year-over-year (“Y/Y”), and first quarter revenue of $10.49 million, compared to revenue of $11.79 million in the same quarter the year prior, representing an 11% decrease Y/Y. Later that day, Camber Energy disclosed that, on May 21, 2021, the NYSE had notified Camber Energy that it was not in compliance with the NYSE’s continued listing standards because of, among other things, “issues that have arisen in connection with . . . finalizing the determination of the fair values of both assets and liabilities associated with the Company’s acquisition of a controlling interest in Viking . . . in December of 2020.” On this news, Camber Energy’s stock price fell.
Then, on August 16, 2021, Viking reported financial and operating results for the quarter ended June 30, 2021, disclosing, among other results, a net loss of $9.85 million for the quarter, and that, “[a]s of June 30, 2021, [Viking] has a stockholders’ deficit of $15,054,324 and total long-term debt of $95,961,611.” With respect to Viking’s liabilities, Viking disclosed, among other things, that “as [Viking]’s subsidiary, Elysium Energy, LLC, and other parties to the term loan agreement, are in default of the maximum leverage ratio covenant under the term loan agreement at June 30, 2021.” On this news, Camber Energy’s stock price fell nearly 7%.
Finally, on October 5, 2021, Kerrisdale Capital released a report alleging, among other issues, that the “market is badly mistaken about Camber’s share count and ignorant of [Camber’s] terrifying capital structure,” estimating Camber Energy’s “fully diluted share count is roughly triple the widely reported number.” On this news, Camber Energy’s stock price fell by more than 50%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Camber Energy securities during the Class Period to seek appointment as lead plaintiff in the Camber Energy class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Camber Energy class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Camber Energy class action lawsuit. An investor’s ability to share in any potential future recovery of the Camber Energy class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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