Cobalt International Energy, Inc.
Robbins Arroyo LLP: Cobalt International Energy, Inc. (CIE) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Cobalt International Energy, Inc. (NYSE: CIE) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between February 21, 2012 and November 4, 2014. Cobalt is engaged in the exploration and production of oil focused and below salt exploration prospects.
Cobalt Is Accused of Misleading Investors
According to the complaint, shares of Cobalt fell multiple times as a combined result of company disclosures regarding the true value of its Lontra and Loengo wells in Angola and reports of questionable business practices. Specifically, the complaint notes that Cobalt shares initially declined $4.72, to close at $17.51 per share on December 3, 2013, after the company revealed that its Lontra well held large amounts of gas, rather than the previously predicted billion barrels of oil. This revelation was further compounded by the company’s August 5, 2014, disclosure that the U.S. Securities and Exchange Commission had issued Cobalt a Wells Notice recommending enforcement action against the company for possible violations of the federal securities laws. On this news, shares of Cobalt declined an additional 11%, to close at $14.22 on August 5, 2014. Shortly thereafter, Cobalt’s stock dropped a further $1.21, to close at $10.07 on November 4, 2014, after the company revealed that testing of the Loengo well found that neither oil nor gas were present despite prior claims that the well was a large, oil-focused high impact well.
The complaint also alleges that Cobalt: (i) gained access to its Angolan wells by partnering with shell companies in Angola that were partially owned by high-level Angolan officials, putting the company at high risk of enforcement action by the SEC and U.S. Department of Justice for violations of the Foreign Corrupt Practices Act and federal securities laws; and (ii) misrepresented the value of its wells in Angola after learning that they contained very little or no oil.
Cobalt Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.