Robbins Geller Rudman & Dowd LLP today announced that a class action
has been commenced in the United States District Court for the Southern
District of New York on behalf of purchasers of CNOOC Limited American
Depositary Shares (“ADSs”) during the period between January 27, 2011
and September 16, 2011.
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff’s counsel, Darren Robbins of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you
are a member of this class, you can view a copy of the complaint as
filed or join this class action online at
http://www.rgrdlaw.com/cases/cnooc/. Any member of the putative class
may move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.
The complaint charges CNOOC and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. CNOOC is China’s
biggest offshore state oil company. CNOOC co-owns the Penglai 19-3 (“PL
19-3”) oilfield in northern Bohai Bay with ConocoPhillips China Inc.
(“ConocoPhillips”) as its operator.
The complaint alleges that during the Class Period, defendants issued
materially false and misleading statements regarding the Company’s
business and financial results. As a result of defendants’ false
statements, CNOOC’s ADSs traded at artificially inflated prices during
the Class Period, reaching a high of US$270.64 per ADS on April 4, 2011.
On June 4, 2011, an oil spill occurred at the PL 19-3 oilfield. A second
spill occurred at the PL 19-3 oilfield on June 17, 2011. The complaint
alleges that CNOOC and ConocoPhillips failed to disclose the spills when
they occurred. However, despite CNOOC’s attempts to conceal the news,
news of the spills began to leak into the market. On July 5, 2011, the
State Oceanic Administration (“SOA”), China’s coastal regulator,
officially acknowledged the spills had occurred. Thereafter, CNOOC
downplayed the extent of the damage done by the oil spills and the
impact it would have on CNOOC’s operations. On September 2, 2011, the
SOA announced that it had ordered CNOOC and ConocoPhillips to
immediately suspend all oil production at the PL 19-3 oilfield. On
September 6, 2011, it was announced that CNOOC and ConocoPhillips would
establish a Bohai Bay fund to address the environmental impact of the
oil spills. On this news, CNOOC’s ADSs declined US$9.39 per ADS on
September 6, 2011. Then, on September 18, 2011, it was announced that
CNOOC and ConocoPhillips would establish a second Bohai Bay fund. On
this news, CNOOC’s ADSs declined another US$6.85 per ADS on September
19, 2011.
According to the complaint, the true facts, which were known by the
defendants but concealed from the investing public during the Class
Period, were as follows: (a) the Company was not in compliance with
environmental laws and regulations; (b) as news of the oil spills
emerged, the Company concealed the extent and severity of the oil
spills; (c) as news of the oil spills emerged, the Company downplayed
its responsibility to effect the cleanup of the oil spills as it
portrayed itself as being the “non-operator” of the oilfield; (d) the
Company improperly accounted for its contingent liabilities in violation
of Generally Accepted Accounting Principles; and (e) based on the
foregoing, defendants lacked a reasonable basis for their positive
statements about the Company’s operations and its expected oil
production.
Plaintiff seeks to recover damages on behalf of all purchasers of CNOOC
ADSs during the Class Period (the “Class”). The plaintiff is represented
by Robbins Geller, which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial fraud.
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