Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of Linn Energy LL
Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of Linn Energy LLC Investors
NEW YORK--(BUSINESS WIRE)-- Wolf Haldenstein Adler Freeman & Herz LLP today filed a class action lawsuit in the United States District Court, Southern District of Texas, on behalf of all persons who purchased master limited partnership units of Linn Energy LLC ("Linn" or the "Company") [NASDAQ:LINE] between February 24, 2011 and July 1, 2013, inclusive (the "Class Period"), against the Company and certain of the Company's officers and directors, alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the "Class").
The case name is Catherine A. Fisher Trustee U/A DTD May 29, 1993 Catherine A. Fisher Trust v. Linn Energy LLC, et al., Civil Action No. 13-cv-02125. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
The Complaint alleges that during the Class Period, the Company issued materially misleading statements and omissions in its press releases, Securities and Exchange Commission ("SEC") filings and other public statements, which were endorsed and approved by the Company's Chief Executive Officer Mark E. Ellis, Chief Financial Officer Kolja Rockov and Chief Accounting Officer David B. Rottino. The complaint explains how Linn enticed investors into purchasing the Company's units through its use of non-Generally Accepted Accounting Principles ("GAAP") accounting measures and concealment of material information concerning the effect of the Company's actual capital expenditures and derivative investment costs on its distributable cash flow. As the Complaint alleges, the Company's use of non-GAAP measures enabled it to entice investors with its unduly high and unsustainable distributable cash flow.
On June 4, 2013, the Company filed a Form S-4/A with the SEC in connection with its proposed acquisition of Berry Petroleum Company ("Berry"). Buried within this filing, the Company disclosed for the first time some of the actual costs associated with its derivative hedging strategy. This previously undisclosed information confirmed earlier reports by Barron's that the Company was overstating its distributable cash flow figures and had been misleading investors.
Finally, on July 1, 2013, Linn disclosed in an amended filing with the SEC that the SEC had opened an informal investigation into the Company's non-GAAP accounting practices, its hedging strategy and the proposed acquisition of Berry jointly with its affiliate, LinnCo LLC. Following this revelation, the Company's per unit market price fell $10.50 per unit, or 31.5%, down to a close of $22.79 per unit on July 3, 2013.
If you purchased Linn master limited partnership units during the Class Period, you may request that the Court appoint you as lead plaintiff by September 9, 2013. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities, multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq.), via e-mail at firstname.lastname@example.org or visit our website at www.whafh.com. All e-mail correspondence should make reference to Linn Energy.
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