NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Berry Corp. (“Berry” or the “Company”) (NASDAQ: BRY) and certain of its officers and directors alleging violations of federal securities laws. If you purchased or otherwise acquired Berry securities between July 26, 2018 and November 3, 2020, both dates inclusive (the “Class Period”), including in the Company’s July 2018 Initial Public Offering (“IPO”), and have suffered losses, you are encouraged to contact Joe Pettigrew for additional information at (844) 818-6982 or jpettigrew@scott-scott.com.
Berry is an energy company that engages in the development and production of conventional oil reserves and is located in the western United States.
The lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Berry had materially overstated its operational efficiency and stability; (2) Berry’s operational inefficiency and instability would foreseeably necessitate operational improvements that would disrupt the Company’s productivity and increase costs; (3) the foregoing would foreseeably negatively impact the Company’s revenues; and (4) as a result, the Offering Documents and the Company’s public statements were materially false and/or misleading and failed to state information required to be stated therein.
Berry held its IPO on July 25, 2018 at a price of $14 per share. The IPO offering documents stated, in relevant part, that the Company’s “predictable” and “low-declining production base,” its “predictable development and production cost structures,” and its “low-cost,” “low-risk” reservoirs uniquely positioned the Company for high corporate-level returns and free cash flow. Berry made other similar statements throughout the Class Period. The lawsuit alleges that these statements were materially misleading.
On November 3, 2020, post-market, Berry reported its financial and operating results for the third quarter of 2020. Among other results, Berry reported non-GAAP EPS and revenue that both fell short of estimates. In addition, Berry reported that, during the quarter, “the Company undertook certain operational improvements that caused temporary reductions in our production. Notably, we performed some plugging and abandonment activity that resulted in temporary shut-in of nearby wells. Additionally, improved steam management reduced overall costs but temporarily increased water disposal and well maintenance needs, resulting in a slight decrease in production.”
On this news, the Company’s stock price fell $0.15 per share, or 5.28%, to close at $2.69 on November 4, 2020 – a decline of over 80% from the IPO price.
What You Can Do
If you purchased Berry securities between July 26, 2018 and November 3, 2020, including pursuant and/or traceable to the Company’s July 2018 Initial Public Offering (“IPO”), or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or jpettigrew@scott-scott.com. The lead plaintiff deadline is January 19, 2020.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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