LOS ANGELES, Sept. 26, 2011 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased the securities of Miller Energy Resources, Inc. ("Miller Energy" or the "Company") (NYSE:MILL), between December 16, 2009 and August 8, 2011, inclusive (the "Class Period"), have 15 days until the October 11, 2011 deadline to file a motion with the Court to be appointed as Lead Plaintiff. The securities fraud class action lawsuit was filed in the United States District Court for the Eastern District of Tennessee.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
Miller Energy engages in the exploration and production of oil and natural gas resources in the United States. The Complaint charges the Company and certain of its executive officers with violations of federal securities laws. On December 16, 2009 the Company announced it had acquired the former Alaskan assets of Pacific Energy Resources, including Alaskan oil and gas assets comprising onshore and offshore production facilities and approximately $300 million in proven or probable energy reserves. The Complaint alleges that throughout the Class Period defendants misrepresented and/or failed to disclose that: (1) the Alaskan assets acquired by the Company were substantially less than claimed by the Company; (2) the Company was inappropriately recording revenue on a gross basis for overriding royalty interests rather than recording revenue on a net basis; (3) the Company failed to record sufficient compensation expense on certain equity awards; (4) the Company did not properly calculate the liability for derivative instruments; (5) as a result of the above, the Company's financial statements were misstated; (6) the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (7) the Company lacked adequate internal and financial controls; and (8), as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 28, 2011, a report by analysts Melissa Davis and Janice Shell questioned the Company's valuation of the Alaskan oil and gas assets and opined that the assets likely had a value between $25 million and $30 million, offset by $40 million in liabilities. Following this news, Miller Energy's share price declined more than 23% on July 28, 2011, and a further 18% the next day, to close at $4.41 per share on July 29, 2011. After the market close, the Company filed its Annual Report on Form 10-K with the Securities and Exchange Commission for Miller Energy's 2011 fiscal year, and restated its unaudited consolidated balance sheets as of July 31, 2010, October 31, 2010 and January 31, 2011 and its unaudited consolidated statements of operations and cash flows for the quarterly and year-to-date periods then ended.
Thereafter, on August 1, 2011, the Company announced that the Audit Committee of the Board of Directors determined that the consolidated balance sheet at April 30, 2011, the consolidated statements of operations, stockholders' equity and cash flows for the year then ended, and the report of KPMG LLP – the Company's independent public accounting firm – on the financial statements, which were included in the Company's July 29, 2011 Annual Report, should not be relied upon. Moreover, the Company disclosed that the 2011 Form 10-K was filed with the SEC "prior to KPMG LLP completing its review of the annual report and issuing their independent accountants' report on the financial statements, as well as the consent to the use of their report filed as Exhibit 23.3."
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing Miller Energy shareholders in this litigation.
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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.