Alange Energy (ALE.v) shareholder suit

I know that this website was one of the few to focus on the weirdness of Alange’s restatement and insider sales back in January, so I figure you as readers will find this interesting:

TORONTO AND WINDSOR, April 18 /CNW/ – A class action has been commenced in the Ontario Superior Court of Justice on behalf of all investors who acquired shares of Alange Energy Corp. (“Alange”) during the period August 30, 2010 to and including January 12, 2011 (the “Class Period”).  The plaintiff alleges that the defendants engaged in violations of Ontario’s Securities Act and the common law.

The plaintiff has retained Sutts, Strosberg LLP to prosecute the class action.

The plaintiff alleges that throughout the Class Period, the defendants misrepresented its daily production of oil that was reported and disseminated to the public.

On January 13, 2011, Alange disclosed that it overstated its daily production of oil by as much as 39 per cent.  After the disclosure, Alange’s share price declined by more than 37 per cent on trading volume of more than 100 million shares.

Jay Strosberg, a partner of Sutts, Strosberg LLP said, “The question that is being asked is how could a company with experienced management so significantly overstate the amount of oil that it was producing?”

Sutts, Strosberg LLP pioneered securities class actions in Ontario.  As a result of resolving class actions such as YBM Magnex, Southwestern Resources, Atlas Cold Storage, CV Technologies and NovaGold Resources; Sutts, Strosberg LLP has recovered more than $150 million for its clients in securities class action alone.  Please visit the Sutts, Strosberg LLP website www.strosbergco.com and www.aleclassaction.com for more information about the Alange class action.