Delta Petroleum, Inc.

Class Period: Nov 9, 2010 to Nov 9, 2011

Lead Plaintiff Deadline: Jun 17, 2012 + Deadline passed

Summary of Case:

A securities class action has been filed against Delta Petroleum, Inc. ("Delta" or the "Company") on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Delta between November 9, 2010 and November 9, 2011.  The case has been filed in the USDC of Colorado.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, Delta stock traded at artificially inflated prices during the Class Period, reaching a high of $11.70 per share on February 28, 2011.

On November 9, 2011, Delta announced is third quarter 2011 financial results. The Company reported a net loss of ($429.4) million, or ($15.40) diluted earnings per share ("EPS"), for the quarter ended September 30, 2011. The significant loss was due mostly to costs associated with drilling dry holes. The Company additionally provided an update on its strategic alternatives process, advising that the Company had not received any offers to purchase the Company or its assets. As a result, Delta would be forced to restructure its indebtedness. Delta further warned investors that should it be unsuccessful in achieving a transaction or transactions addressing the Company's liquidity, it would be forced to seek protection under Chapter 11 of the U.S. Bankruptcy Code.

On this news, Delta stock collapsed $1.34 per share to close at $0.71 per share on November 10, 2011, a one-day decline of 65% on volume of nearly 4.5 million shares.

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.

The complaint further alleges that the defendants knew but concealed from the investing public during the Class Period the following:

(a) The Company was not adequately reserving for its dry hole costs and impairments in violation of Generally Accepted Accounting Principles ("GAAP"), causing its financial results to be materially misstated;
(b) 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 (c) The Company had far greater exposure to liquidity concerns than it had previously disclosed.

 As a result of defendants' false statements and omissions, Delta common stock traded at artificially inflated prices during the Class Period. However, after the above revelations seeped into the market, the Company's shares were hammered by massive sales, sending them down 94% from their Class Period high.

If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.