NEW YORK, Dec. 2, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Cobalt International Energy, Inc. ("Cobalt" or the "Company") (NYSE:CIE) and certain of its officers. The class action, filed in United States District Court, Southern District of Texas, is on behalf of a class consisting of all persons or entities who purchased Cobalt securities between February 21, 2012 and November 4, 2014, inclusive (the "Class Period") including persons who purchased or otherwise acquired: (i.) Cobalt securities on the open market; (ii.) Cobalt's common stock pursuant and/or traceable to registered public offerings conducted on or about February 23, 2012, January 16, 2013 and May 8, 2013; and/or (iii.) Cobalt's 2.65% Convertible Senior Notes due 2019, pursuant and/or traceable to the registered public offering conducted on or about December 12, 2012, and/or Cobalt Convertible Senior Notes due 2024, pursuant and/or traceable to the registered public offering conducted on or about May 8, 2014 (collectively, the "Offerings"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Cobalt securities during the Class Period, you have until February 2, 2015 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 Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Cobalt is engaged in the exploration and production of oil-focused and below-salt exploration prospects.
The Complaint alleges that during the Class Period, Cobalt and certain of its senior executives violated provisions of the Exchange Act by issuing materially false and misleading press releases, filings with the Securities and Exchange Commission ("SEC"), and statements during investor conference calls. The Complaint also alleges that in connection with the Offerings, the Company issued securities pursuant to materially misstated filings with the SEC.
As alleged in the Complaint, Cobalt has portrayed itself as a company with "world class," "large" and "oil-focused" wells in the Republic of Angola and claimed that the Company gained access to those wells in compliance with the U.S. law outlawing the bribery of foreign officials (the Foreign Corrupt Practices Act or "FCPA"). In truth, Cobalt obtained access to its Angolan wells from the Republic of Angola by partnering with shell companies in Angola that were partially owned by high-level Angolan officials, putting the Company at serious risk of enforcement action by the SEC and U.S. Department of Justice ("DOJ") for violations of the FCPA and the federal securities laws. In addition, Cobalt misrepresented the value of its wells in Angola after the Company learned that they contained very little or no oil.
As a result of the Company's statements to investors, the prices of Cobalt's stock and bonds were artificially inflated during the Class Period. Investors first began to learn the truth when: (i.) on December 1, 2013, the Company revealed negative results from its Lontra well; (ii.) on August 5, 2014, Cobalt announced that the SEC had escalated its then-ongoing investigation of the Company for possible violations of the federal securities laws by issuing Cobalt a Wells Notice; and (iii.) on November 4, 2014, Cobalt disclosed negative results regarding its Loengo well.
On this news, shares of Cobalt fell $1.31 per share, or approximately 11.51%, to close at $10.07 per share on November 4, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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.