Case Page

 

Case Status:    SETTLED
On or around 03/17/2010 (Settlement preliminarily approval)

Filing Date: November 30, 2005

According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, on or around November 30, 2005, George Porch filed a putative class action in the United States District Court for the Western District of Louisiana against Stone and certain individuals purporting to allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Three similar complaints were filed soon thereafter. All complaints had asserted a putative class period commencing on June 17, 2005 and ending on October 6, 2005. On March 17, 2006, these purported class actions were consolidated, with El Paso Fireman & Policeman’s Pension Fund designated as Lead Plaintiff. Lead plaintiff filed a consolidated class action complaint on or about June 14, 2006. The consolidated complaint alleges claims similar to those described above and expands the putative class period to commence on May 2, 2001 and to end on March 10, 2006. On September 13, 2006, Stone and the individual defendants filed motions seeking dismissal of that action.

The original Complaint alleges defendants, Stone Energy and certain of its officers and directors, violated federal securities laws by issuing a series of materially false statements. The Company engages in the acquisition, exploration, development, operation, and production of oil and gas in the Gulf of Mexico, various basins of the Rocky Mountains, and Williston basin oil of North Dakota and Montana.

Specifically, the complaint alleges defendants failed to disclose and misrepresented the following adverse facts: (i) that Stone Energy was materially overstating its financial results by overvaluing its oil reserves through improper and aggressive reserve methodologies. Stone Energy has now launched an internal investigation into its reserve practices and admitted that it overstated its oil reserves and that it will be restating its financial statements for 2001 to 2004 and for the first six months of 2005; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (iii) that as a result of the foregoing, the values of the Company's proven reserves, assets and future net cash flows were materially overstated at all relevant times.

The complaint further alleges that on or around October 6, 2005, Stone Energy issued a press release announcing that it intends to take a significant reserve write-down, among other things. On this news, the price of Stone Energy stock fell $7.93 per share or almost 14% to close at $48.14 per share. Then, on November 8, 2005, Stone Energy issued a press release announcing that it will restate its financial statements for the periods from 2001 to 2004 and for the first six months of 2005.

On December 11, 2006 the defendants filed a notice that their September 2006 motion to dismiss was to be changed to a motion for summary judgment. The motions were referred to Magistrate Judge Methvin for briefing, who submitted her August 17, 2007 "Reports and Recommendations" calling for the section 10b claims be dismissed against two individuals, that the claims of plaintiffs who sold their shares before the October 6, 2005 disclosure by Stone of the reserve errors be dismissed, but that the motions to dismiss be denied as to all other claims asserted by plaintiffs.

Despite numerous objections to the Magistrate's "Reports and Recommendations" regarding the dismissal of the section 10b claims, a judgment was entered adopting the Magistrate's suggestion of dismissal on October 1, 2007. Defendants filed an answer to the remaining claims on October 16, 2007.

On April 29, 2009, a Rule 54(B) Final Judgment was ordered in the action as to only the individual claims by Plaintiff El Paso Firemen and Policemen's Pension Fund.

On May 19, 2009, a Notice Of Appeal was filed with the United States Court of Appeals for the Fifth Circuit.

On September 30, 2009, an order to appoint counsel was granted Bernstein Litowitz Berger & Grossmann LLP as Co-Lead Counsel, Morrow Morrow Ryan & Bassett as Liaison Counsel and, Barroway topaz Kessler Meltzer Check LLP as Co-Lead Counsel.

On December 17, 2009, an Order was rendered by the Fifth Circuit Court of Appeals thereby dismissing without prejudice to the right of either party to reinstate the
appeal by letter to the Clerk of this Court within 180 days. Otherwise the case will be dismissed with prejudice.

On January 14, 2010, a proposed order preliminarily approving settlement was granted by the court.

COMPANY INFORMATION:

Sector: Energy
Industry: Oil & Gas Operations
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SGY
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Louisiana
DOCKET #: 05-CV-02049
JUDGE: Hon. Mildred E. Methvin
DATE FILED: 11/30/2005
CLASS PERIOD START: 06/17/2005
CLASS PERIOD END: 10/06/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Ann D. White Law Offices PC
    101 Greenwood Avenue, Fifth Floor, Ann D. White Law Offices PC, PA 19046
    1.866.389.0274 215-481-0271 · awhite@awhitelaw.com
  2. Baron & Budd, P.C.
    312 Oak Lawn Avenue, Suite 1100, Baron & Budd, P.C., TX 75219
    1800-946-9646 · info@baronandbudd.com
  3. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  4. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  5. Klafter & Olsen LLP (Washington)
    1250 Connecticut Ave., N.W. Suite 200, Klafter & Olsen LLP (Washington), DC 20036
    202.261.3553 202.261.3533 · info@klafterolsen.com
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  8. Mager & Goldstein LLP (Coral Springs)
    2825 University Drive, Suite 350, Mager & Goldstein LLP (Coral Springs), FL 33065
    866-274-8258 954-341-0855 · jgoldstein@mwg-law.com
  9. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  10. Patton, Roberts, McWilliams & Capshaw, LLP
    Century Bank Plaza - Suite 400; 2900 St. Michael Drive, Patton, Roberts, McWilliams & Capshaw, LLP, TX 75503
    903-334-7000 903-334-7007 · website@pattonroberts.com
  11. Roy Jacobs & Associates (New York)
    350 Fifth Avenue Suite 3000 , Roy Jacobs & Associates (New York), NY 10118
    · classattorney@pipeline.com
  12. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  13. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  14. Smith & Smith LLP
    3070 Bristol Pike, Suite 112, Smith & Smith LLP, PA 19020
    215.638.4847 215.638.4867 ·
  15. Spector, Roseman & Kodroff (Philadelphia)
    1818 Market Street; Suite 2500, Spector, Roseman & Kodroff (Philadelphia), PA 19103
    215.496.0300 215.496.6610 · classaction@srk-law.com
No Document Title Filing Date
COURT: W.D. Louisiana
DOCKET #: 05-CV-02088
JUDGE: Hon. Mildred E. Methvin
DATE FILED: 06/14/2006
CLASS PERIOD START: 05/02/2001
CLASS PERIOD END: 03/10/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (former San Diego)
    12544 High Bluff Drive, Suite 150, Bernstein Litowitz Berger & Grossmann LLP (former San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
  2. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
No Document Title Filing Date
No Document Title Filing Date