Our securities attorneys are investigating claims on behalf of investors of Jagged Peak Energy, Inc. (NYSE: JAG) regarding allegations that Jagged Peak may have issued materially misleading statements regarding its business prospects to the investing public at the time of the company’s IPO. A class action lawsuit was recently filed alleging violations of federal securities laws.
IPO Raises More than $400 Million in Proceeds
On January 27, 2017 Jagged Peak Energy conducted its initial public offering, selling $31,599,334 shares at a price of $15.00 per share. The offering raised approximately $474 million in gross proceeds for the company. Since then, shares of Jagged Peak have dropped 15-20%, causing significant harm to investors.
Representations in IPO Documents
Although companies at the IPO stage are interested in ensuring a high offering price, they are required by law to provide an accurate and clear picture of prospects and risks in the Registration Statement and Prospectus. In the case of Jagged Peak, it is alleged in the complaint that the Company failed to disclose in its offering documents the risks of its acreage, including that many of its wells were positioned in an area where extractability had not been tested and therefore there was significant risk that its wells would produce less than other wells in the Southern Delaware Basin.
Girard Gibbs LLP is one of the nation’s leading firms representing individual and institutional investors in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and has earned Tier-1 rankings and been named in the U.S. Lawyers – Best Law Firms list for four consecutive years.
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