Cano Petroleum Inc. Case 10/02/2008

UPDATE, DEC 3, 2009 - Cano Petroleum, Inc. (CFW) announced that the U.S. Northern District Court of Texas on December 3, 2009, had dismissed all the claims of plaintiff Truk International Fund LP that Cano's June 26, 2008 public equity offering of Cano common stock was misleading. Judge John McBryde of the U.S. Nothern District Court of Texas dismissed the lawsuit on finding that the plaintiff had failed to state a claim and denied Truk International leave to amend the claim.

On Thursday, October 2, 2008, a shareholder of Cano Petroleum, Inc (AMEX: CFW) has filed a proposed class action lawsuit on behalf of securities purchasers of common stock from the date of the Company’s registration statement and prospectus filed with the SEC in connection with Cano’s June 26, 2008 secondary public offering in the United States District Court for the Southern District of New York against Cano Petroleum, Inc. over allegedly untrue statements in connection with its Secondary Public Offering.

According to the complaint the plaintiff alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The stockholder alleges that the Company issued a series of false and material misrepresentations in its registration statement and prospectus filed with the SEC in connection with its Secondary Public Offering on June 26, 2008. Specifically the plaintiff alleges that the registration statement and prospectus filed with the SEC for the Cano Petroleum, Inc shares issued in the Secondary Offering contained untrue statements of material facts, was inaccurate and misleading, omitted to state other facts necessary to make the statements made not misleading, and concealed and failed adequately to disclose material facts. The Prospectus contained statements concerning proved reserve amounts and standards that were materially false and overstated Cano Petroleum, Inc.’s proved reserves.