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In re Stone Energy Corporation Securities Litigation
(United States District Court for the Western District of Louisiana)
Securities fraud class action filed on behalf of a class of persons and entities
who purchased or acquired the common stock of Stone Energy Corporation (“Stone” or the “Company”) between
May 2, 2001 and March 10, 2006 (the "Class Period").
On March 17, 2006, Magistrate Judge Methvin appointed the El Paso Firemen & Policemen’s
Pension Fund as Lead Plaintiff and BLB&G as Lead Counsel for the Class. On June
14, 2006, Lead Plaintiff filed a
Consolidated Class
Action Complaint against the Company and its former chief executive
officers, D. Peter Canty and David H. Welch, and its former chief financial
officers, James H. Prince and Kenneth H. Beer (collectively, the "defendants"). Lead Plaintiff alleges that
the defendants violated the federal securities
laws by overstating the Company's oil and gas reserves from the beginning of 2001 through the second quarter of 2005, resulting
in the material understatement of the Company’s operating expenses and the overstatement of its net income in each
quarter during that period. Defendants have filed motions to dismiss,
which Lead Plaintiff opposed.
On August 17, 2007, Magistrate Judge Methvin issued a report and recommendation that defendants' motions be denied
in large part and that plaintiffs' claims under Section 10(b) of the Securities Exchange Act against defendants
Canty and Welch be sustained and plaintiff's claims under Section 20(a) of the
Securities Exchange Act against all defendants be sustained. On October 1, 2007, U.S. District Judge Melançon
entered judgment adopting Magistrate Judge Methvin's report and recommendation.
Discovery is ongoing.
On May 12, 2008, Lead Plaintiff filed its Motion for
Class Certification.
Firm partner
David Stickney,
Senior Counsel Niki Mendoza
and associate
Benjamin Galdston are
responsible for prosecuting this action.
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