SAN FRANCISCO, Jan. 09, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Extraction Oil & Gas, Inc. (XOG) investors who have suffered losses to submit their losses now to learn if they qualify to recover their investment losses. The firm is actively investigating whether the Company and senior executives violated federal securities laws, and certain investors may have valuable claims.
Extraction Oil & Gas, Inc. (XOG) Investigation:
The investigation centers on whether Extraction Oil & Gas misled investors by engaging in improper revenue recognition practices and reporting false financial results.
On Sept. 4, 2019, Extraction Oil & Gas announced the abrupt resignation of its CFO Russell Kelley. This news drove the price of the XOG shares sharply lower the next day.
Then, on Dec. 23, 2019, the Company filed an amended quarterly report for the quarter ended Sep. 30, 2019. The Company admitted that it overstated quarterly revenues by over $20 million, or 11.5%. The Company also disclosed that it had overstated quarterly net income by over $14 million, or a whopping 42%. The Company claimed the accounting error resulted from using an improper contract term for one of its revenue contracts. Specifically, the Company had improperly accounted for revenue relating to the contract through August 2023, when the contract could be terminated with no penalty in April 2021. This news drove the price of XOG shares lower the next trading day.
“We’re focused on investors’ losses and whether the Company intentionally inflated its revenues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Extraction Oil & Gas and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Extraction Oil & Gas should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email XOG@hbsslaw.com.
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Reed Kathrein, 844-916-0895