LITTLE ROCK, Ark., July 19, 2013 (GLOBE NEWSWIRE) -- Emerson Poynter LLP (www.emersonpoynter.com), a national law firm with offices in Little Rock, Arkansas and Houston, Texas, announces that it has filed a class action lawsuit on behalf of purchasers of Linn Energy, LLC ("Linn Energy" or the "Company") (Nasdaq:LINE) units during the period between February 25, 2010 and July 1, 2013 (the "Class Period").
The complaint charges Linn Energy and certain of its officers with violations of the Securities Exchange Act of 1934. Linn Energy describes itself as a top-15 U.S. independent oil and natural gas development company whose mission is to acquire, develop and maximize cash flow from its portfolio of long-life oil and natural gas assets. Linn Energy, a limited liability company, became a public entity when it issued "units" representing its limited liability company interests to the public in 2006. The units are listed and traded on the NASDAQ Global Select Market.
The complaint further alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's operations and business. Specifically, defendants misrepresented and failed to make public the following adverse facts: (i) that the Company failed to sufficiently disclose how its reported distributable cash flow, or DCF, and its distribution coverage ratio were derived; (ii) that the Company failed to disclose that its reported adjusted EBITDA included the financial benefits of its hedging strategies while the financial costs were not included; (iii) that the Company failed to disclose known events or uncertainties associated with its reported cash flows; (iv) that as a result of (i)-(iii) above, defendants materially misrepresented the true risk associated with the Company's ability to continue to issue stable or increasing cash distributions; (v) that the Company's disclosure controls were materially deficient, and its representations concerning them were materially false and misleading; and (vi) that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its cash flows, distributions and future financial prospects.
On July 1, 2013, after the market closed, the Company issued a press release announcing that the SEC had commenced an informal inquiry and it "ha[d] requested the preservation of documents and communications that are potentially relevant to, among other things, . . . Linn Energy's . . . use of non-GAAP measures and hedging strategy." In reaction to this news, Linn Energy units fell $6.24 per unit, or nearly 19%, to close at $27.05 per unit on July 2, 2013. The next day, the price of Linn Energy units fell an additional $4.26 per unit, or nearly 16%, to close at $22.79 per unit on July 3, 2013.
Plaintiffs seek to recover damages on behalf of all purchasers of Linn Energy units during the Class Period.
If you purchased Linn Energy units during the class period (February 25, 2010 to July 1, 2013) and wish to serve as lead plaintiff, you must move the Court no later than September 9, 2013. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Emerson Poynter LLP has a national and international class action legal practice with offices in Little Rock, Arkansas and Houston, Texas. Emerson Poynter handles complex commercial litigation with a concentration in those cases that involve violations of federal and state securities or antitrust laws, the Employee Retirement Income Security Act of 1974 ("ERISA"), and consumer protection laws. The Firm has substantial experience in litigating large complex class-action cases and serves in a leadership position in numerous cases.