Gulfport Energy Corporation Class Action Lawsuit Filed On Behalf GPOR Investors Who Purchased, Or Otherwise Acquired, Gulfport Energy Securities Between May 3, 2019 and February 27, 2020, Both Dates Inclusive – Kehoe Law Firm, P.C. Investigating Securities Claims On Behalf of GPOR Shareholders
Kehoe Law Firm, P.C. is making investors aware that a class action lawsuit was filed on March 17, 2020 in United States District Court, Southern District of New York, on behalf of all persons, other than Defendants, who purchased, or otherwise acquired, the securities of Gulfport Energy Corporation (“Gulfport Energy” or the “Company”) (NASDAQ: GPOR) between May 3, 2019, and February 27, 2020, both dates inclusive (the “Class Period”).
The class action lawsuit seeks to recover damages caused by the Gulfport Energy Defendants’ alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
According to the class action complaint, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business and operations. The Gulfport Energy Defendants, allegedly, made false and/or misleading statements and/or failed to disclose that: (i) a material weakness existed in Gulfport Energy’s internal control over financial reporting; (ii) accordingly, Gulfport Energy’s disclosure controls and procedures were ineffective; (iii) as a result, Gulfport Energy’s financial statements contained multiple misstatements; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Gulfport Energy Files Form 8-K – Discloses That Previously Issued Financial Statements For The Three and Nine Months Ended September 30, 2019 Should No Longer Be Relied Upon
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 $0.08 per share, or 8.89%, closing at $0.82 per share on February 28, 2020.
Are You A Gulfport Energy Corporation Investor Who Purchased, Or Otherwise Acquired, GPOR Securities During The Class Period And Suffered Losses?
Gulfport Energy investors who purchased, or otherwise acquired, the securities of Gulfport Energy Corporation between May 3, 2019, and February 27, 2020, both dates inclusive, are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to learn more about the Gulfport Energy securities investigation, the class action lawsuit or potential legal claims.