NEW YORK, Aug. 17, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against Miller Energy Resources, Inc. ("Miller" or the "Company") (NYSE:MILL) and certain of its officers. The class action (Civil Action No. 11-cv-0386) in the United States District Court for the Eastern District of Tennessee is on behalf of a class consisting of all persons or entities who purchased Miller securities from December 21, 2009 through and including August 8, 2011, (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act, 15 U.S.C. Sections 78j(b) and 78t(a); and SEC Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. Section 240.10b-5.
If you are a shareholder who purchased Miller securities during the Class Period, you have until October 11, 2011 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x350.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the value of Alaskan assets acquired by the Company were substantially less than claimed by the Company; (2) the Company improperly accounted depletion, depreciation and amortization expenses related to leasehold costs, wells and equipment, fixed assets and assets retirement obligations and did not properly record the state tax credits expected from its Alaska operations; (3) the Company improperly accounted revenue on a gross basis for overriding royalty interests rather than recording revenue on a net basis; (4) the Company improperly accounted sufficient compensation expenses on equity awards; (5) the Company improperly calculated the liability for its derivative instruments; (6) the Company failed to consolidate an entity that it controls; (7) the Company lacked adequate internal and financial controls; and (8) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On July 28, 2011, stock research analysts Melissa Davis and Janice Shell issued a report questioning the valuation of a 2009 acquisition by Miller of certain Alaskan Oil and Gas assets, which Miller valued on its books at about $479 million. Citing a number of sources, including interviews with industry experts, Shell and Davis asserted that Miller had fraudulently overstated the value of the assets. On this news, Miller shares plummeted $2.63, or more than 37% in two consecutive trading sessions, to close at $4.41 on July 29, 2011.
On August 1, 2011, Miller disclosed that its annual report on Form 10-K, filed just three days earlier, should no longer be relied upon as the "10-K was filed with the SEC on July 29, 2011, prior to KPMG LLP completing its review of the annual report and issuing their independent accountants' report on the financial statements." On this news, shares of Miller declined by $0.46 per share, or 10.43%, to close on August 1, 2011 at $3.95 per share on unusually heavy volume.
On August 9, 2011, Miller disclosed that for the fiscal quarters ended July 31, 2010 and October 31, 2010, it "failed to properly record depletion, depreciation and amortization expense related to leasehold costs, wells and equipment, fixed assets and asset retirement obligations and did not properly record the state tax credits expected from our Alaska operations." Moreover, for the fiscal quarter ended January 31, 2011, the Company had "inappropriately recorded revenue on a gross basis for overriding royalty interests." On these additional revelations, Miller shares declined an additional $0.37 or more than 13%, to close at $2.36.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.