NEW YORK, Jan. 25, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at SandRidge Energy, Inc. ("SandRidge" or the "Company") (NYSE: SD).
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The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) SandRidge's Mississippi formation assets had been materially overstated, particularly with regard to the amount of high-margin oil deposits; (2) the Company was suffering mechanical issues with one of its Gulf of Mexico drills, impeding 2Q 2012 drilling at a key rig; (3) the $1.3 billion Dynamic Offshore acquisition would be utilized merely as a "financing vehicle" for the Company's onshore drilling projects; and (4) SandRidge's fiscal year 2012 earnings guidance would not be attainable.
On November 8, 2012, after the close of trading, SandRidge disclosed that they had been grossly overstating the proportion of oil-producing versus natural gas producing assets in the Company's Mississippi formation. The Company also disclosed that they intended to sell the remaining interest in the Company's Permerian Basin assets, even though those assets were the Company's highest-margin oil producing assets.
On this news, SandRidge's stock collapsed from its November 8, 2012 closing price of $6.10 per share to close at $5.51 per share on November 9, 2012, or 9%, on extremely high volume.
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Take Action
If you invested in SandRidge stock or options between February 24, 2011 and November 8, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/SD. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding SandRidge's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
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Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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