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OXY.US
id: 2275

Anadarko Petroleum Corporation ($APC) $114.5 Million Investor Settlement

The settlement terms have been submitted to the court for approval.
$114,500,000
Cash Settlement
S.D. Texas
Court
4:20-cv-00576
Case number
02/15/2015
Class period Start
05/02/2017
Class period End

Anadarko Petroleum Corporation agreed to a $114.5 million settlement to resolve claims that the company and certain executives made materially false or misleading statements concerning its Shenandoah oil field.

Outline:

Anadarko agreed to pay $114.5 million to resolve a securities class action involving its Shenandoah oil project. Investors alleged that Anadarko overstated the value and success of the Shenandoah assets and appraisal wells and failed to disclose material adverse information. Defendants denied wrongdoing and entered into the settlement to resolve the litigation.

Timeline:

  • February 20, 2015: The Class Period began with Anadarko’s filing of its 2014 annual report, which included statements about the Shenandoah project.

  • May 2, 2017: Anadarko recorded a $467 million impairment charge and expensed $435 million in suspended exploratory well costs related to Shenandoah and disclosed that further appraisal activities had been suspended.

  • May 3, 2017: Anadarko common stock closed at $51.95 per share, down approximately 8% from its May 2 closing price.

  • November 4, 2019: Allegations concerning Anadarko’s assessment of the Shenandoah project became public through a Fifth Circuit opinion involving a former Anadarko engineer.

  • September 28, 2026: The parties entered into the Stipulation of Settlement.

Background:

Anadarko discovered the Shenandoah oil field in the Gulf of Mexico in 2009 and spent several years appraising its potential. During the Class Period, the company made positive statements about the field, including the results of its appraisal wells and the project’s resource potential.

Investors alleged that Anadarko and certain executives overstated the value of the Shenandoah assets and the success of its appraisal wells. The complaint also alleged that the company lacked effective internal control over financial reporting and that its statements concerning Shenandoah lacked a reasonable basis.

On May 2, 2017, Anadarko disclosed a $467 million impairment charge and expensed $435 million in suspended exploratory well costs associated with Shenandoah. The company said it had suspended further appraisal activities following the results of the Shenandoah-6 well and in light of the commodity-price environment.

Following the disclosure, Anadarko common stock declined approximately 8%, closing at $51.95 per share on May 3, 2017. Investors later brought federal securities claims against Anadarko and certain executives.

Defendants denied making material misstatements or omissions and denied that Anadarko’s stock was artificially inflated or that investors suffered damages because of the alleged conduct. The parties ultimately agreed to resolve the litigation for $114.5 million in cash, subject to Court approval.

What Can Investors Expect Now?

Anadarko Petroleum Corporation agreed to a $114.5 million settlement to resolve claims that the company and certain executives made materially false or misleading statements concerning its Shenandoah oil field.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type
US Securities Class Action
Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Fraud, 
Failure to Disclose
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.41
Filing date
02/19/2020
Plaintiffs
Georgia Firefighters’ Pension Fund
Attorneys
ROBBINS GELLER RUDMAN & DOWD LLP
Defendants
R.A. Walker ; Robert G. Gwin ; Robert P. Daniels
Administrator
Verita Global
Attorney fee
$37,850,000
Trades matching type
FIFO

Frequently Asked Questions