NEW YORK, Nov. 30, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed on behalf of all persons and entities who purchased New Source Energy Partners 11% Series A Cumulative Convertible Preferred Units (“Series A Preferred Units”) (NYSE:NSLP-PA) pursuant and/or traceable to Registration Statements, Prospectuses, and Prospectus Supplements (the “Offering Documents”) filed with the Securities and Exchange Commission (“SEC”).
The Complaint alleges that Defendants, including New Source Energy Partners L.P. (“New Source”), the underwriters of the Series A Preferred Units issued pursuant to the Offering Documents, and certain Individual Defendants, with violating the Sections 11, 12(2), and 15 of the Securities Act of 1933 by making misleading statements and omissions in the Offering Documents. It alleges that investors were damaged when the value of the Series A Preferred Units declined as a result of defendants’ wrongful conduct described in the Complaint.
On May 5, 2015, New Source initially priced 1.76 million units of the 11% Series A Cumulative Convertible Preferred Units at $25.00 per unit through underwriters Stifel, Nicolaus & Company, Robert W. Baird & Co., Janney Montgomery Scott, Oppenheimer & Co. and Wunderlich Securities. On September 28, 2015, prior to the commencement of trading, New Source announced that due to a pending borrowing base deficiency under its revolving credit facility, it would be prevented from paying the quarterly cash distribution on its 11% Series A Cumulative Convertible Preferred units. As a result of this disclosure, the price of the publicly traded New Source 11% Series A Cumulative Convertible Preferred Units closed at $2.18, down $3.62 on the day.
If you wish to serve as lead plaintiff, you must move the Court no later than January 25, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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