On May 8, 2017, Pomerantz LLP was appointed Co-Lead Counsel in a class action lawsuit filed against Northern Oil and Gas, Inc. (“Northern Oil” or the “Company”) (NYSE:NOG) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 16-cv-06543, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Northern Oil securities between March 1, 2013 and August 15, 2016, both dates inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
Northern Oil is an independent energy company engaged in the acquisition, exploration, development, and production of oil and natural gas properties in the United States. The Company primarily holds interests in the Bakken and Three Forks formations in the Williston Basin of North Dakota and Montana.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Northern Oil’s compliance policies with respect to SEC regulations and the Company’s Code of Business Conduct and Ethics were inadequate to detect and/or prevent misconduct by the Company’s officers; (ii) consequently, the Company’s Chief Executive Officer (“CEO”), Defendant Michael Reger (“Reger”), was able to engage in illegal stock manipulation during his tenure at Northern Oil; (iii) Reger was consequently unfit to serve as Northern Oil’s CEO; and (iv) as a result of the foregoing, Northern Oil’s public statements were materially false and misleading at all relevant times.
On August 16, 2016, Northern Oil fired Reger as CEO after Reger told the Company that he had received a Wells Notice[1] from the SEC and faced federal sanctions in connection with the SEC’s investigation of 2012 trading patterns in the securities of Dakota Plains Holdings, Inc, a company in which Reger initially invested in 2008. Northern Oil stated that Reger had been removed from the Company’s board, effective immediately, and that the Company does not believe that Reger will be entitled to any severance payment.
On this news, Northern Oil stock fell $0.25, or 6.28%, to close at $3.73 on August 16, 2016.