SAN DIEGO & HOUSTON--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP announces that shareholders of Alta Mesa Resources, Inc. (AMR) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 on behalf of purchasers of Silver Run Acquisition Corporation II ("Silver Run") (SRUN) between March 25, 2017 and February 25, 2019. Silver Run was formed for the specific purpose of acquiring assets in the energy sector that offered attractive risk-adjusted returns for investors.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/alta-mesa-resources/
Silver Run Accused of Filing False Registration Statements
According to the complaint, Silver Run was required to acquire a target business that would "provide opportunities for attractive risk-adjusted returns" using the proceeds of its initial public offering ("IPO") within two years of the IPO date. On August 16, 2017, Silver Run announced it had entered into an agreement with Alta Mesa, an oil and gas exploration and production company, and Kingfisher, which specialized in the gathering, processing, and marketing of hydrocarbons form oil and gas producers.
On January 19, 2018, Silver Run issued a Definitive Merger Proxy Statement to its shareholders recommending shareholders vote in favor of the acquisition, stating that "Alta Mesa and Kingfisher were of superior quality, and that although "alternative target opportunities" had been considered, they "did not entirely fit the investment criteria of Silver Run." The complaint alleges that the Proxy omitted and misrepresented material information concerning core aspects of Alta Mesa and Kingfisher that diminished their expected cash flows.
Just two months after the acquisition closed, Silver Run released dismal financial results, and continued to produce poor results in each quarter thereafter. The stock declined after each announcement, and now trades at just $0.30, a momentous fall from the class period high of $10.73 per share.
Alta Mesa Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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