SOURCE: Bernstein Litowitz Berger & Grossmann LLP

December 02, 2014 11:17 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against Cobalt International Energy, Inc., Certain of Its Senior Executives and Directors, and the Underwriters of Cobalt Securities Offerings

NEW YORK, NY--(Marketwired - Dec 2, 2014) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action lawsuit on behalf of its clients St. Lucie County Fire District Firefighters' Pension Trust Fund ("St. Lucie FF") and Fire and Police Retiree Health Care Fund, San Antonio ("San Antonio Health") against Cobalt International Energy, Inc. ("Cobalt" or the "Company") (NYSE: CIE), certain of its senior executives and directors, the underwriters of its securities offerings and certain investment firms that controlled the Company (collectively "Defendants").

The action, which is captioned St. Lucie County Fire District Firefighters' Pension Trust Fund, et al. v. Bryant, et al., No. 14-3428 (S.D. Tex. Nov. 30, 2014), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder, against the Company and certain of its executives. The Complaint also asserts non-fraud claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 against the Company, certain Cobalt senior executives and directors, the underwriters of Cobalt's stock offerings and certain investment firms that had representatives on the Cobalt Board of Directors during the Class Period.

The action is brought on behalf of purchasers of Cobalt's securities between February 21, 2012 and November 4, 2014, inclusive (the "Class Period"), including persons who purchased or otherwise acquired: (i.) Cobalt securities on the open market; (ii.) Cobalt's common stock pursuant and/or traceable to registered public offerings conducted on or about February 23, 2012, January 16, 2013 and May 8, 2013; and/or (iii.) Cobalt's 2.65% Convertible Senior Notes due 2019, pursuant and/or traceable to the registered public offering conducted on or about December 12, 2012, and/or Cobalt Convertible Senior Notes due 2024, pursuant and/or traceable to the registered public offering conducted on or about May 8, 2014 (collectively, the "Offerings").

Cobalt is an oil exploration and production company headquartered in Houston, Texas with operations in the Gulf of Mexico and offshore West Africa. The Complaint alleges that during the Class Period, Cobalt and certain of its senior executives violated provisions of the Exchange Act by issuing materially false and misleading press releases, filings with the Securities and Exchange Commission ("SEC"), and statements during investor conference calls. The Complaint also alleges that in connection with the Offerings, the Company issued securities pursuant to materially misstated filings with the SEC. 

As alleged in the Complaint, Cobalt has portrayed itself as a company with "world class," "large" and "oil-focused" wells in the Republic of Angola and claimed that the Company gained access to those wells in compliance with the U.S. law outlawing the bribery of foreign officials (the Foreign Corrupt Practices Act or "FCPA"). In truth, Cobalt obtained access to its Angolan wells from the Republic of Angola by partnering with shell companies in Angola that were partially owned by high-level Angolan officials, putting the Company at serious risk of enforcement action by the SEC and U.S. Department of Justice ("DOJ") for violations of the FCPA and the federal securities laws. In addition, Cobalt misrepresented the value of its wells in Angola after the Company learned that they contained very little or no oil.

As a result of the Company's statements to investors, the prices of Cobalt's stock and bonds were artificially inflated during the Class Period. Investors first began to learn the truth when: (i.) on December 1, 2013, the Company revealed negative results from its Lontra well; (ii.) on August 5, 2014, Cobalt announced that the SEC had escalated its then-ongoing investigation of the Company for possible violations of the federal securities laws by issuing Cobalt a Wells Notice; and (iii.) on November 4, 2014, Cobalt disclosed negative results regarding its Loengo well. In response to these disclosures, the prices of Cobalt securities fell sharply and investors incurred significant losses as a result.

If you wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than 60 days from today. Accordingly, the deadline for filing a motion for appointment as lead plaintiff is Monday, February 2, 2015. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

St. Lucie FF and San Antonio Health are represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Avi Josefson
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    (212) 554-1493