HARTFORD, Conn., Nov. 30, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Louisiana on behalf of all persons who purchased the common stock of Stone Energy Corporation (NYSE:SGY) between June 17, 2005 and October 6, 2005, inclusive (the "Class Period").
The Complaint alleges defendants violated federal securities laws by issuing a series of materially false statements. Specifically, 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.
On 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.
If you are a member of the class, you may, no later than January 30, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca