SOURCE: Brower Piven, A Professional Corporation

April 20, 2012 17:36 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $250,000 From Investment in Delta Petroleum, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the June 18, 2012 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Apr 20, 2012) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of the publicly traded securities of Delta Petroleum, Inc. ("Delta" or the "Company") (PINKSHEETS: DPTRQ) during the period between November 9, 2010 and November 9, 2011, inclusive (the "Class Period").

If you have suffered a net loss for all transactions in Delta Petroleum, Inc. publicly traded securities during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.

No class has yet been certified in the above action. 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 June 18, 2012 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 are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company was not adequately reserving for its dry hole costs and impairments, causing its financial results to be materially misstated, that Delta's unproductive assets would hinder its ability to find a buyer for itself or its assets as the value of the Company's assets was less than the value of its aggregate debt, and that the Company had significant exposure to liquidity concerns. According to the complaint, after, on November 9, 2011, Delta announced a net loss of $429.4 million for the quarter ended September 30, 2011 due mostly to costs associated with drilling dry holes and announced that the Company had not received any offers to purchase the Company or its assets, and as a result, Delta would be forced to restructure its indebtedness and, should it be unsuccessful in achieving a transaction or transactions addressing the Company's liquidity, seek protection under Chapter 11 of the U.S. Bankruptcy Code, the value of Delta shares declined significantly.

Also according to the complaint, on December 16, 2011, Delta announced that it, along with its affiliates, had filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court.

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
    Stevenson, Maryland
    410/415-6616
    Email Contact