BENSALEM, Pa., Oct. 1, 2008 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith, representing investors of Quest Resource Corporation and Quest Energy Partners, L.P., has filed a securities class action lawsuit on behalf of all persons who purchased the common units of Quest Energy Partners L.P. ("Quest Energy" or the "Company") (Nasdaq:QELP) pursuant and/or traceable to the Company's Registration Statement and Prospectus issued in connection with the Company's Initial Public Offering (the "IPO") on November 7, 2007 through August 25, 2008, and on behalf all persons who purchased the securities of Quest Resource Corporation ("Quest Resource" or the "Company")(Nasdaq:QRCP) between May 2, 2005 and August 25, 2008 (the "Class Period"). The class action lawsuit was filed in the United States District Court for the Western District of Oklahoma.
The Complaint charges Quest Energy and its parent company, Quest Resource, among others, with violations of federal securities laws. Quest Resource is engaged in the exploration, development, production and transportation of natural gas. Quest Energy is the gas and oil production operation arm of Quest Resource and engages in the acquisition, exploitation and development of oil and natural gas properties. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Quest Resource's and Quest Energy's business and operations were materially false and misleading. Specifically, the Complaint alleges that defendants failed to disclose that the related party transactions, which existed at the time of Quest Energy's IPO, between Quest Energy and Rockport Energy -- an entity controlled by Quest Energy's chief executive officer -- in violation of Generally Accepted Accounting Principles and SEC regulations. These failures by defendants caused Quest Resource's disclosures on related party transactions to be materially incomplete and false.
On August 25, 2008, the Company announced, among other things, the resignation of its CEO, Jerry Cash, the formation of a Joint Special Committee to conduct an investigation of improper transfers of Company funds by Cash to Rockport Energy, and an inquiry launched by the Oklahoma Department of Securities in connection with the improper transfers.
This announcement shocked the market and caused the Company's stock to fall $2.05 per share, or nearly 30%, to $4.88 per share on August 25, 2008.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased the common units of Quest Energy pursuant and/or traceable to the Company's IPO on November 7, 2007 through August 25, 2008, or purchased the securities of Quest Resource Corporation between May 2, 2005 and August 25, 2008, you have certain rights, and have until November 4, 2008, to move for Lead Plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to howardsmith@howardsmithlaw.com or visit our website at www.howardsmithlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.globenewswire.com/ca.