Cohen, Placitella & Roth, PC Investigating Forest Oil, Inc. for Misleading Statements Regarding Results and Debt Agreements
By: CPR @ Apr 03, 2014
February 27, 2014, Philadelphia, PA: Cohen, Placitella and Roth, PC is investigating claims on behalf of investors who purchased Forest Oil, Incorporated (“Forest Oil” or “Company”) (NYSE: FST) stock between October 3, 2013 and February 26, 2014, inclusive. The investigation concerns whether Forest Oil and certain of its officers and/or directors disseminated material false and/or misleading information to investors in violation of Sections 10(b), and 20(a) of the Securities Exchange Act of 1934.
Forest Oil is an independent oil and gas company that acquires, explores for, develops, and produces oil, natural gas, and natural gas liquids. On October 3, 2013, the Company announced that its credit risk dropped to the lowest point in more than two years due to its $1 billion sale of oil and natural gas assets. In stark contrast, and without warning, after the market’s close on February 25, 2014, the Company disclosed disappointing fourth quarter 2013 earnings results. Quarter-over-quarter revenue from oil and gas sales declined 43% to $88.49 million, down from $154 million, falling $96.31 million short of analyst expectations. The Company also disclosed that its estimates of proved reserves were only 625 billions of cubic feet equivalent (bcfe), over half of the amount it disclosed as of December 31, 2012. As a result, earnings per share, too, fell far short of market expectations.
Further, in its annual report, filed on February 26, 2014, Forest Oil warned investors that it could fail to comply with requirements under one of its borrowing agreements. This, the Company disclosed, could cause both $800 million in bond debt to come due, and, in turn, default. On this news, on February 26, 2014, the Company’s stock price closed at $2.01 per share, down 38% from the prior day’s close.
If you have any information on Forest Oil’s financial position or debt agreements, or you wish to discuss your rights related to a loss in your investment in Forest Oil, please contact Eduardo A. Texidor, Jr. at [email protected] or, toll free, at 1-215-567-3500. For those investors inquiring via email, please be sure to include “Forest Oil” in the subject line, the number of shares purchased, and your mailing address and telephone number.
Since 1973, Cohen, Placitella & Roth, PC has been recognized as one of the premier trial law firms in the country. The firm has extensive experience in prosecuting securities litigation involving violations of the federal securities laws, state law derivative actions and mergers and acquisitions cases, representing institutional investors such as public pension plans and union pension funds as well as individual shareholders suffering substantial investment losses due to corporate misconduct. LexisNexis Martindale-Hubbell® annually reports Cohen, Placitella & Roth’s peer rating-the highest AV® – “a testament to professional excellence.” Since the inauguration of its “Best Law Firms”‘ edition in 2010, U.S. News and World Report has annually listed Cohen, Placitella & Roth’s as one of the top-tier class action law firms in the country.
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