SAN FRANCISCO, Feb. 28, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Gulfport Energy Corporation (GPOR) who have suffered losses in excess of $100,000 to submit their losses now. The firm is investigating possible securities law violations, and certain investors may have valuable claims.
Gulfport Energy Corporation (GPOR) Investigation:
The investigation concerns the propriety of Gulfport’s accounting; specifically, the Company’s exclusion of certain leasehold costs from its reported depreciation, depletion, and amortization (DD&A) calculations.
On Aug. 9, 2019, in the middle of Q3 2019, Gulfport disclosed the abrupt resignation of CFO Keri Crowell. The Company stated, however, “[t]here were no disagreements between the Company and Ms. Crowell on matters relating to any control issues or disagreements on the Company’s financial statement disclosures or accounting policies or practice.” Two directors who served on the Board’s Audit Committee would later announce their intent to step down.
On Nov. 1, 2019, the Company released “strong” 3Q 2019 financial results. In its quarterly report Gulfport affirmed the effectiveness of its internal control over financial reporting.
But on Feb. 27, 2020, Gulfport disclosed that its 3Q 2019 financial statements contained material misstatements. Gulfport admitted it (1) understated its accumulated DD&A by $553 million, (2) overstated its income from operations by $553 million, and (3) overstated its net income by $436 million. Gulfport also revealed a material weakness in its internal control over financial reporting. The Company further released disappointing Q4 2019 and year end results, together with dim 2020 guidance.
On Feb. 28, 2020, Gulfport held an earnings call, providing additional information about the accounting error and the Company’s dire 2020 projections.
In response to this news, the price of Gulfport shares has declined nearly 25%.
“We’re focused on investors’ losses and whether Gulfport intentionally misled investors with its admittedly faulty asset and expense accounting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Gulfport and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Gulfport 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 GPOR@hbsslaw.com.
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Reed Kathrein, 844-916-0895