Kosmos Energy Ltd (NYSE:KOS) Investor Files New Class Action Lawsuit Over Alleged Securities Laws Violations In Connection with May 2011 IPO
July 11, 2012 (Shareholders Foundation) -- An An investor in NYSE:KOS shares filed a lawsuit in the U.S. District Court for the Northern District of Texas against Kosmos Energy Ltd. over alleged Violations of Federal Securities Laws in connection with the companies’ initial public offering (IPO) on or about May 16, 2011.
According to the complaint the plaintiff alleges on behalf of purchasers Kosmos Energy Ltd (NYSE:KOS) common stock, including those purchasing in the Company's initial public offering held on or about May 16, 2011, that Kosmos Energy Ltd violated the Securities Act of 1933.
Specifically, the plaintiff claims that Kosmos Energy Ltd allegedly concealed that the Company's "Jubilee" oil field project in the Republic of Ghana was underperforming, allegedly issued false and misleading statements in the IPO's offering documents that allegedly failed to disclose certain design defects in Kosmos Energy's oil wells, all of which were allegedly known to the Company prior to the IPO.
Kosmos Energy Ltd (NYSE:KOS) reported that is first quarter Revenue rose from $92.57million in 2011 to $115.77million in 2012 and its Net Loss decreased from $54.65million in 2011 to $37.54million in 2012.
On Nov. 10, 2011 Kosmos Energy Ltd announced its third quarter 2011 results. Among other things, Kosmos Energy Ltd said that its third quarter Revenue rose from $1.99million for the third quarter 2010 to $232.84million for the third quarter 2011 and its third quarter Net Loss of $82.55million from 2010 turned into a third quarter Net Income of $51.78million. It was not until November 10, 2011, when Kosmos Energy Ltd addressed the problems with the Jbulee oil wells, so the lawsuit
Shares of Kosmos Energy Ltd (NYSE:KOS) fell from over $19 per share in May 2011 to as low as $10.11 in May 2012.
On July 11, 2012, NYSE:KOS shares closed at $10.36 per share.