According to the complaint filed on April 18, 2012, Delta is an independent oil and gas company engaged primarily in the exploration for, and the acquisition, development, production, and sale of, natural gas and crude oil. Its core area of operations is the Rocky Mountain region, in which its proved reserves and production are located.
During the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. As a result of defendants’ false statements, Delta stock traded at artificially inflated prices during the Class Period, reaching a high of $11.70 per share on February 28, 2011.
On November 9, 2011, Delta announced is third quarter 2011 financial results. The Company reported a net loss of ($429.4) million, or ($15.40) diluted earnings per share (“EPS”), for the quarter ended September 30, 2011. The significant loss was due mostly to costs associated with drilling dry holes. The Company additionally provided an update on its strategic alternatives process, advising that the Company had not received any offers to purchase the Company or its assets. As a result, Delta would be forced to restructure its indebtedness. Delta further warned investors that should it be unsuccessful in achieving a transaction or transactions addressing the Company’s liquidity, it would be forced to seek protection under Chapter 11 of the U.S. Bankruptcy Code.
On this news, Delta stock collapsed $1.34 per share to close at $0.71 per share on November 10, 2011, a one-day decline of 65% on volume of nearly 4.5 million shares.
On October 23, 2012, the Court issued an Order consolidating cases, appointing lead plaintiff, and approving the selection of lead counsel.
On January 7, 2013, the lead plaintiff filed a Consolidated Complaint. The next day, the plaintiff filed a corrected version of the complaint.
On September 30, 2013, the Court issued an Order granting the Defendants' motion to dismiss. Final Judgment was entered the next day. Plaintiffs filed a Notice of Appeal of this Order on February 19, 2014. On April 7, 2015, the Court of Appeals issued an Opinion affirming in part and reversing in part the judgment of the District court. This case was remanded for further proceedings.
Lead Plaintiff filed an Amended Complaint on July 17, 2015.
On September 18, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on November 3. On June 13, 2016, the Court granted final approval of the Settlement and dismissed this case.