Kehoe Law Firm, P.C. Investigating Securities Claims Against Gulfport Energy Corporation on Behalf of GPOR Shareholders
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors that purchased the securities of Gulfport Energy Corporation (“Gulfport Energy” or the “Company”) (NASDAQ: GPOR).
If you purchased Gulfport Energy stock and suffered losses, you are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]hoelawfirm.com, [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to learn more about the Gulfport Energy securities investigation or your potential legal claims.
In a February 27, 2020 Form 8-K filed with the SEC, Gulfport Energy disclosed that “. . . management of Gulfport Energy Corporation . . . concluded, and the Audit Committee . . . of the Company’s Board of Directors . . . concurred, that [Gulfport Energy’s] previously issued unaudited consolidated financial statements for the three and nine months ended September 30, 2019, which were included in [Gulfport Energy’s] Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, which was originally filed with the Securities and Exchange Commission . . . on November 1, 2019 . . . should no longer be relied upon due to material misstatements.” [Emphasis added.]
Gulfport Energy stated that
[i]n the course of preparing the consolidated financial statements for the year ended December 31, 2019, the Company identified a misstatement of its depreciation, depletion and amortization and impairment of oil and gas properties as of September 30, 2019 of approximately $554 million ($436 million net of the tax benefit) related to unrecorded transfers of its unevaluated oil and natural gas properties into the amortization base. This error impacted the related calculations of [Gulfport Energy’s] depreciation, depletion and amortization and impairment of oil and natural gas properties for the three and nine month periods ended September 2019. Net (loss) income and income tax (benefit) expense have also been impacted.
Additionally, Gulfport Energy stated that it
. . . has determined that a material weakness in internal control over financial reporting existed as of September 30, 2019, and therefore the Company has concluded that its disclosure controls and procedures as of September 30, 2019 were not effective. Therefore, the Company’s previous evaluation of its disclosure controls and procedures as of September 30, 2019 should no longer be relied upon.
Shares of Gulfport Energy declined sharply on this news, thereby injuring Gulfport Energy investors.