NEW YORK, July 9, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP announces the filing of a class action lawsuit against Linn Energy, LLC ("Linn" or the "Company") (Nasdaq:LINE) and certain of its officers. The class action, filed in United States District Court, Southern District of Texas, and docketed under 13-cv-01992, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Linn between April 28, 2011 and July 1, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Linn securities during the Class Period, you have until September 9, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Linn is an independent natural gas exploration and production company. The Company develops and acquires various oil and gas properties in the United States.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company engaged in improper accounting for its hedging strategy, including the failure to properly treat certain hedging costs invested in derivatives as expenses; (2) the Company was overstating the cash flow available for distribution to unit holders by improperly using non-GAAP financial measures to account for certain derivatives including put options on natural gas; (3) the Company's energy production was not increasing, despite its heavy capital expenditures; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
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, 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. As a result of this news, Linn units declined $1.97 per unit or more than 5%, to close at $33.75 per unit on May 6, 2013.
On July 1, 2013, the Company disclosed that the SEC opened an informal inquiry in connection with the Company's use of non-GAAP financial measures, its hedging strategies, and its acquisition of Berry Petroleum Company jointly with its affiliate, LinnCo, LLC. On this news, Linn shares declined $10.50 per unit or 31.5% within two trading sessions, to close at $22.79 per unit on July 3, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP email@example.comSource:Pomerantz Grossman Hufford Dahlstrom & Gross LLP