FX Energy, Inc. - Securities Class Action

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FX Energy, Inc. Summary: The original Complaint charges FX Energy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. FX Energy is an independent energy company with activities concentrated within the upstream oil and gas industry. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the methods used to estimate the Company's potential reserves were flawed and defective; (2) that that given the Company's erroneous methodology for determining reserves, the Company's future business prospects were inherently uncertain and unachievable; (3) that the Company's estimated reserve numbers varied by orders of magnitude for the Company's Sroda, Zaniemysl and Winna Gora sites, and that their estimates were lacking in any reasonable basis; (4) that the Company lacked adequate internal controls; and (5) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.

The complaint further alleges that on December 20, 2005, the Company shocked investors when it reported that its Lugi-1 well was determined to be "uneconomic," and that the well would be plugged and abandoned. The head of the Company's technical team stated that "[u]ntil the well results are better understood, the impact of the well on the major Rusocin Lugi pinchout play can not be fully determined." On this news, the Company's shares fell $2.34 per share, or 21.5 percent, to close on December 20, 2005 at $8.55 per share, on unusually heavy trading volume.

Then on January 5, 2006, the Company again shocked investors when it announced that a drill stem test on the Company's Sroda-5 well in western Poland tested gas and brine. Additonally, the Company indicated that additional drilling would need to take place before the commerciality of the well could even be determined. On this news, the Company's shares fell an additional $2.19 per share, or over 26.5 percent, to close on January 5, 2006 at $6.07 per share, also on unusually heavy trading volume.

On December 18, 2007, Judge Dale A. Kimball issued the Order granting the motion to consolidate cases. On January 18, 2008, several motions to appoint lead plaintiff and for approval of selection of lead counsel were filed by plaintiffs. On February 7, 2008, the Court entered the Order from Judge Kimball granting the motion to appoint FX Energy Investor Group’s motion for appointment as Lead Plaintiff and approval of selection of Lead Counsel. According to the Order, Scott + Scott, LLP, and Schatz Nobel Izard, P.C., were selected as Co-Lead Counsel. On April 21, 2008, a Consolidated Complaint for Violations of Federal Securities Laws was filed. On June 20, 2008, the defendants responded by filing a motion to dismiss the Consolidated Complaint. On June 25, 2009, Judge Clark Waddoups signed the Order and Memorandum Decision granting the defendants’ motion to dismiss for failure to state a claim.

INDUSTRY CLASSIFICATION:
SIC Code: 1311
Sector: Energy
Industry: Oil & Gas Operations

COMPANY/ISSUER NAME:	FX Energy, Inc.
COMPANY/ISSUER TICKER:	FXEN
COMPANY WEBSITE:	http://www.fxenergy.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Kevin Pykkonen, et al. v. FX Energy, Inc., et al.

COURT: D. Utah	DOCKET NUMBER: 07-CV-00874
JUDGE NAME: Hon. Dale A. Kimball
DATE FILED: 11/13/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 03/30/2004	CLASS PERIOD END: 01/05/2006
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Anderson & Karrenberg 700 Bank One Tower, 50 West Broadway, Salt Lake City, UT, 84101 (voice) 801.534.1700, (fax) , Schiffrin Barroway Topaz & Kessler, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7056, info@sbtklaw.com Scott & Scott LLC (Connecticut) P.O. Box 192, 108 Norwich Avenue, Colchester, CT, 06415 (voice) 860.537.5537, (fax) 860.537.4432, scottlaw@scott-scott.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 11/13/2007
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/13/2007
Order Consolidating Related Actions, And Setting Schedule For Filing Consolidated Complaint And Briefing Certain Motions
Type: Order		Date on the document: 12/18/2007
Order Approving Lead Plaintiffs' Collective Motion For Appointment As Lead Plaintiff And Approving Selection Of Counsel
Type: Order		Date on the document: 2/8/2008
Order Appointing Lead Plaintiff And Approving Selection Of Lead And Local Counsel
Type: Order		Date on the document: 2/16/2008

REFERENCE COMPLAINT

In Re FX Energy, Inc. Securities Litigation

COURT: D. Utah	DOCKET NUMBER: 07-CV-00874
JUDGE NAME: Hon. Dale A. Kimball
DATE FILED: 04/21/2008	SOURCE: Docket
CLASS PERIOD START: 01/20/2005	CLASS PERIOD END: 01/05/2006
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Schatz Nobel Izard P.C. One Corporate Center, 20 Church Street , Hartford, CT, (voice) 860.493.6292, (fax) 860.493.6290, info@snlaw.net Scott & Scott LLC (Connecticut) P.O. Box 192, 108 Norwich Avenue, Colchester, CT, 06415 (voice) 860.537.5537, (fax) 860.537.4432, scottlaw@scott-scott.com Scott & Scott LLP (San Diego) 600 B Street, Suite 1500, San Diego, CA, 92101 (voice) 619.233.4565, (fax) 619.233.4565, scottlaw@scott-scott.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 4/21/2008
Order and Memorandum Decision
Type: Order		Date on the document: 06/25/2009
Judgment in a Civil Case
Type: Summary Judgment		Date on the document: 06/26/2009
US District Court Civil Docket
Type: Docket		Date on the document: 06/26/2009

OTHER DOCUMENTS
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: Terry Muller, et al. v. FX Energy, Inc., et al.
Type: Complaint		Date on the document: 12/5/2007

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