SOURCE: Brower Piven, A Professional Corporation

August 11, 2008 13:06 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $250,000 From Investment in SemGroup Energy Partners, L.P. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the September 19, 2008 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - August 11, 2008) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common units of SemGroup Energy Partners, L.P. ("SGLP" or the "Company") (NASDAQ: SGLP) during the period between July 17, 2007 and July 17, 2008, inclusive (the "Class Period"). This action, expanding the class period and claims asserted in earlier filed actions, arises under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and under Sections 11 and 12(a)(2) of the Securities Act of 1933 and has been brought on behalf of those who purchased common units of SGLP pursuant to the Registration Statements and Prospectuses issued in connection with SGLP's Initial Public Offering completed on or about July 23, 2007 ("IPO") and in connection with its secondary offering of common units on February 13, 2008.

No class has yet been certified in the above actions. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than September 19, 2008 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/332-0030) to answer any questions you may have in that regard.

SGLP provides storage, gathering, and transportation services for companies engaged in the production, distribution, and marketing of crude oil. The Complaint alleges that SGLP's parent SemGroup, L.P. (the "Parent") was in financial difficulty or at high risk for such financial difficulty as a result of its investment in risky crude oil hedge transactions by the start of the class period, but hid this from investors in SGLP, including by providing limited representations about its relationship with the Parent and risks surrounding the Parent's operations. The allegations in the complaint also indicate that in February 2008, SGLP effected a secondary offering (the "Offering"), where it sold 6 million units at $23.90 for proceeds of $137 million and that the Company borrowed substantial funds and purchased the Parent's asphalt business for $387 million. It is alleged in the Complaint that this transaction was designed to financially prop up the Parent. The Complaint explains that the Prospectus for the Offering described the positive relationship between SGLP and the Parent and described how important the Parent was to SGLP since it was SGLP's primary customer and provided almost all of the Company's revenue, but that there was no discussion of the Parent's financial difficulties or risk factors. The complaint further alleges that by July 11, 2008, SGLP unit values began to decline on increased trading volume despite the release of no adverse news and that on July 17, 2008, SGLP unit prices declined 50% to $11.00 on greatly increased volume of 5.7 million units, after material adverse news which had been withheld by defendants began to leak, thus forcing the defendants to issue a statement after the market closed on July 17, 2008 revealing that the Parent was experiencing liquidity issues and was exploring various alternatives, including raising additional equity, debt capital or the filing of a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code. The complaint indicates that as a result, the price of the Company's units continued to decline, wiping out almost $300 million in unit holder value.

If you have suffered a net loss for all transactions in SemGroup Energy Partners, L.P. during the Class Period, including transactions pursuant to the IPO completed on July 23, 2007 and pursuant to the February 13, 2008 secondary offering, you may obtain additional information about these lawsuits and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-332-0030, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/332-0030
    Email Contact