Case Page

 

Case Status:    SETTLED
On or around 10/05/2011 (Date of order of final judgment)

Filing Date: July 21, 2008

According to a law firm press release, the class action filed against the company alleges that the Prospectus for the secondary offering misrepresented the financial strength of SemGroup's Parent (SemGroup, L.P.) and failed to disclose that the Parent had engaged in risky hedging strategies that presented a material risk of default and bankruptcy. Inasmuch as SemGroup's business operations were heavily dependent on its Parent, the true facts concerning the Parent's financial condition were material to a reasonable investor's decision to purchase units on the secondary offering. Those true facts were first disclosed to investors on Thursday, July 17, 2008, when it was revealed that because of its hedging strategies the Parent was at risk of filing for bankruptcy. The Parent and affiliated companies subsequently filed for bankruptcy on Monday, July 21, 2008. As a result of the July 17, 2008 disclosures and subsequent bankruptcy filing, SemGroup's units, which closed on Wednesday, July 16, 2008 at $22.80 per unit, plummeted to close on Wednesday, July 23, 2008 at $8.00 per unit. Documents filed on behalf of the Parent in Bankruptcy Court revealed that SemGroup began experiencing financial distress in 2007 and early 2008, prior to the secondary offering. The Prospectus failed to disclose that the Parent was suffering from liquidity problems, or that it was engaged in highly risky crude oil hedge transactions that affected its ability to continue as a going concern.

On August 26, 2008, a notice of voluntary dismissal without prejudice was filed and granted.

On April 30, 2010, the Court issued an Opinion and Order granting in part and denying in part the defendants’ motions to dismiss.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Non-Metallic Mining
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SGLP
Company Market: NASDAQ
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: N.D. Oklahoma
DOCKET #: 08-CV-06477
JUDGE: Hon. Paul A. Crotty
DATE FILED: 07/21/2008
CLASS PERIOD START: 02/20/2008
CLASS PERIOD END: 07/17/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
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COURT: N.D. Oklahoma
DOCKET #: 08-MD-01989
JUDGE: Hon. Paul A. Crotty
DATE FILED: 10/10/2008
CLASS PERIOD START: 02/20/2008
CLASS PERIOD END: 07/17/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 · classattorney@aol.com
  2. Roy Jacobs & Associates (New York)
    60 East 42nd Street, 46th Floor, Roy Jacobs & Associates (New York), NY 10165
    212.867.1156 212.867.1156 · jacobs@jacobsclasslaw.com
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