The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Camber Energy, Inc. (“Camber” or the “Company”) (NYSE: CEI) securities between February 18, 2021 and October 4, 2021, inclusive (the “Class Period”). Camber investors have until December 28, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
In February 2021, Camber completed a business combination with Viking Energy Group, Inc. (“Viking”).
On May 24, 2021, Camber revealed that the New York Stock Exchange had notified Camber that it was not in compliance with its continued listing standards because, among other things, “issues that have arisen in connection with . . . finalizing the determination of the fair values of both assets and liabilities associated with [Camber]’s acquisition of a controlling interest in Viking.”
On this news, Camber’s stock price declined by $0.04 per share, or 9%, to close at $0.57 per share on May 25, 2021.
Then, on August 16, 2021, Viking filed its quarterly report for second quarter 2021 reporting a net loss of $9.85 million net loss and stating that its subsidiary, Elysium Energy, LLC, and other parties to a term loan agreement “are in default of the maximum leverage ratio covenant.”
On this news, the Company’s stock price fell $0.03, or 7%, to close at $0.37 per share on August 17, 2021, thereby injuring investors further.
Then, on October 5, 2021, Kerrisdale Capital released a report alleging, among other things, that the “market is badly mistaken about Camber’s share count and ignorant of [Camber’s] terrifying capital structure,” estimating the Company’s “fully diluted share count is roughly triple the widely reported number.”
On this news, Camber’s stock price fell $1.56 per share, or 50%, to close at $1.53 per share on October 5, 2021, thereby injuring investors further.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Camber overstated the financial and business prospects of Viking as well as the combined company post-Merger; (ii) Camber failed to apprise investors of, and/or downplayed, the fact that its acquisition of a controlling interest in Viking would exacerbate the Company's delinquent financial statements and listing obligations with the NYSE; (iii) an institutional investor was diluting Camber's shares at a significant rate following the Company's July 12, 2021 update regarding the number of its shares of common stock issued and outstanding; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
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If you purchased Camber Energy securities during the Class Period, you may move the Court no later than December 28, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Camber Energy securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Camber Energy, Inc. (CEI) Investors