Kosmos Investors Bring Class Action Suit to Recover Money Claiming Federal Securities Law Violations During IPO
Investors in Dallas Texas based oil company Kosmos Energy Ltd. (“Kosmos”) (NYSE:KOS) filed a class action law suit Tuesday, January 10, 2012, accusing Kosmos Federal securities laws violations by hiding defects in its offshore oil field project at the time of its $594 million initial public offering in May 2011. In their complaint, Investors claim that Kosmos concealed that its Jubilee oil field project in Ghana was underperforming, issued false or misleading statements in its offering documents and failed to disclose certain design defects in its oil wells, all of which were known to Kosmos prior to the IPO.
Kosmos initially stated in its offering documents leading up to the IPO that the oil field would produce 120,000 barrels of oil per day and did not mention any design defects with the oil wells. Investors discovered the field problems when Kosmos partner Tullow Oil PLC issued a press release stating a minor delay in project performance and reported the field flowing at only 80,000. According to the complaint, Tullow stated this was due to “extra work required” on the gas compression systems. Next month, Investors claim Tullow reduced its projected oil production to between 79,000 to 81,000 barrels per day.
The design defects in the oil wells and the underperforming field has cost Investors hundreds of millions of dollars. In November, Kosmos told investors in a conference call that it would cost a considerable amount in 2012 to fix the defects in the well, and would delay the expected production levels by years.
What you can do:
If you purchased or otherwise acquired shares of Kosmos Energy between May 16, 2011 to November 10, 2011, you may have legal claims under securities laws. You may contact Gilman Law LLP to discuss your rights to recovery of your losses or to obtain additional information.
The attorneys at Gilman Law have over 40 years of experience representing both individual and institutional investors in securities class action suits and all major aspects of securities litigation. Our firm has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of Kosmos Energy’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please complete the