HARTFORD, Conn., Nov. 20, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard 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 District of Utah on behalf of all persons who purchased the common stock of FX Energy, Inc. ("FX Energy" or the "Company") (Nasdaq:FXEN) between March 30, 2004 and January 5, 2006, inclusive (the "Class Period").
The Complaint charges that FX Energy, an independent oil and gas exploration and production company, and certain of its officers and directors violated federal securities laws. Specifically, defendants made false and misleading statements regarding oil and gas reserve estimates in the Company's exploration areas located in the western part of Poland in a geological zone known as the Permian Basin. As late as July 2005, the Company reiterated overly aggressive and objectively baseless claims of gas reserve estimates, exceeding one trillion cubic feet of gas in its various finds.
On December, 20 2005, the Company began to communicate lowered expectations and estimates for its yet undrilled wells. Finally, on January 4, 2006, the Company's CEO admitted to its prior false and misleading interpretations of the available data, resulting in new "estimates" for oil and gas reserves that were orders of magnitude less than those disclosed during the Class Period. As a result of the shocking news, the price of FX Energy stock plunged more than 26.5%, falling from $8.26 per share on January 4, 2006, to close at $6.07 per share on January 5, 2006, for a loss of $2.19 per share.
If you are a member of the class, you may, no later than January 18, 2008, 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 Izard P.C. 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 Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.