HARTFORD, Conn., Jan. 31, 2006 (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 Southern District of New York on behalf of all persons who purchased the American Depository Receipts ("ADRs") of Repsol YPF, S.A. ("Repsol" or the "Company") (NYSE:REP) between July 28, 2005 and January 27, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing misrepresentations concerning Repsol's proven reserves. Reserves are estimates of oil and natural gas a company has and expects to pump, a crucial metric in gauging a company's growth prospect. Throughout the Class Period, defendants failed to disclose the following: (i) that Repsol was materially overstating its proven reserves. Repsol has now admitted that it will downgrade its proven reserves by 25% and take an asset impairment charge of approximately EUR 50 million; (ii) that Repsol was experiencing increasing political pressure in Bolivia which will have an adverse effect on the Company's operations; (iii) that the Company was experiencing difficulties in its production of gas in Bolivia; and (iv) that contracts with Repsol's existing customers would likely not be extended due to complications in extracting gas from certain fields in Argentina.
On January 26, 2006, the Company filed its Form 6-K with the SEC in which it announced that it was cutting its oil and gas reserves estimate by 25% due mostly to problems that it had experienced in Bolivia and Argentina. On this news, on January 26, 2006, Repsol ADRs closed at $27.99, a decline of $2.12 per ADR, or over 7%. On January 27, 2006, Respol ADRs continued to decline, falling another $1.34 per ADR, or approximately 5%.
If you are a member of the class, you may, no later than April 3, 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