Apache Corporation (APA) Investor Settlement
Apache Corporation has agreed to settle $65M with investors to resolve claims about the business prospects at Alpine High.
Outline
In 2014, Apache acquired 300k acres in Texas, promoting it as the promising “Alpine High” oil discovery. Despite knowing the site's limited viability, management misrepresented production potential, leading to a 93% stock drop and $24 billion in lost value once the truth emerged.
Timeline
In 2016: Apache announced Alpine High as a major oil discovery in Texas.
On February 26, 2020: Apache revealed a $3 billion write-down for Alpine High, wiping out two years of profits and reducing its dividend by 90%.
After the news, Apache's stock collapsed by 93%.
On February 23, 2021: Apache faced a lawsuit from investors.
Background
In 2016, Apache promoted Alpine High as a major oil discovery in Texas, with CEO John J. Christmann highlighting its potential worth of over $8 billion.
However, in February 2020, Apache announced a $3 billion write-down for Alpine High, erasing two years of profits and cutting its dividend by 90%.
Moreover, media criticism of the write-down highlighted CEO John Christmann's earlier reassurances, leading to a 93% drop in stock value.
Following these events, investors filed lawsuit against Apache, claiming the company misled them about Alpine High's poor performance and hid important production details.
What can investors expect now?
Apache Corporation has agreed to settle $65M with investors to resolve claims about the business prospects at Alpine High.
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 below.
Frequently Asked Questions
All persons or entities who purchased or otherwise acquired Apache common stock from September 7, 2016 through March 13, 2020, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.36 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.44 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.