MINNEAPOLIS, July 29, 2008 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced against SemGroup Energy Partners, L.P. ("SemGroup") (Nasdaq:SGLP), and certain affiliated parties, in the United States District Court for the Southern District of New York on behalf of investors in SemGroup on the February 13, 2008 secondary offering.
Plaintiff 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. Because 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 from the secondary offering. The facts were first disclosed to investors on Thursday, July 17, 2008, when SemGroup revealed that because of its hedging strategies, the Parent was at risk for filing for bankruptcy. The Parent and its 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.
If you are a member of the class, you may, no later than September 19, 2008, request that the Court appoint you as lead plaintiff of the class. Your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff.
If you purchased SemGroup units during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com) Charles H. Johnson & Associates 2599 Mississippi Street New Brighton, MN 55112 (651) 633-5685