Case Page

 

Case Status:    ONGOING    
On or around 09/05/2017 (Ongoing date of last review)

Filing Date: December 05, 2016

According to a law firm's press release, the complaint alleges on January 15, 2015, Southwestern conducted the Offering, selling 30 million depositary shares at a price of $50 per share, and gaining net proceeds of $1.672 billion. Southwestern's Registration Statement, filed with the U.S. Securities and Exchange Commission in support of the Offering, stated that the company's long-term outlook for the business is favorable and that its resource base, financial strength, and disciplined capital would provide the company with an opportunity to grow through new exploration and development activities. However, the complaint alleges that the Registration Statement Southwestern issued contained misleading statements and omitted material information. Specifically, the company failed to disclose that it was experiencing severe liquidity and debt issues that threatened its ability to continue its drilling activities.

Approximately one year after the Offering, on January 21, 2016, Southwestern revealed in a letter to the Texas Workforce Commission that it would lay off 376 employees at its Spring, Texas office, a strategy that was part of the company's larger workforce reduction plan to cut 1,100 positions. Then, on February 25, 2016, the company reiterated its "decision to temporarily halt its drilling activities." On June 9, 2016, Southwestern announced that it sold 55,000 net acres of land in West Virginia for $450 million due to its looming debt obligations. Southwestern's depositary shares (SWNC) have plummeted nearly 53% since the Offering, closing at $23.54 per share on November 1, 2016.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: SWNC
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: S.D. Texas
DOCKET #: 16-CV-03569
JUDGE: Hon. Alfred H Bennett
DATE FILED: 12/05/2016
CLASS PERIOD START: 01/15/2015
CLASS PERIOD END: 12/05/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott + Scott LLP (NY)
    405 Lexington Avenue, 40th Floor, The Chrysler Building, Scott + Scott LLP (NY), NY 10174
    (212) 223-6444 (212) 223-6444 ·
  2. The Bilek Law Firm, L.L.P.
    808 Travis, Suite 802, The Bilek Law Firm, L.L.P., TX 77002
    713.227.7720 713.227.7720 ·
No Document Title Filing Date