Miller Energy Resources (MILL) Securities $7.6M Settlement

Miller Energy Resources (MILL) agreed to settle a $7.6M settlement to avoid further litigation.

If you purchased or otherwise acquired Miller Energy's Series C and/or Series D Preferred Stock on or after February 13, 2013, and were damaged thereby, you are a Settlement Class Member.

Plaintiffs alleged that in December 2009, Miller Energy purchased the Alaska Assets for $2.25 million in cash, along with the assumption of certain liabilities valued at approximately $2 million and, within weeks, reported them at an overstated value of approximately $480 million, and recognized a one-time “bargain purchase gain” of $277 million for the third and fourth quarters of its 2010 fiscal year. Plaintiffs alleged, among other things, that the overstated values included in filings made with the SEC and that the September 6, 2012 Registration Statement and prospectus supplements for the offerings relating to Miller Energy's 10.75% Series C Cumulative Redeemable Preferred Stock ("Series C") and 10.5% Series D Fixed Rate/Floating Rate Cumulative Redeemable Preferred Stock ("Series D") (collectively, the "Offerings") were materially false and misleading, and in violation of the federal securities laws.

Plaintiffs further alleged that the Underwriter Defendants failed to perform adequate due diligence in connection with their role as an underwriter of the Offerings and were negligent in failing to ensure that the Registration Statement was prepared properly and accurately, and was free from misstatements or omissions of material fact. More specifically, Plaintiffs alleged that a series of disclosures following the close of the Offerings revealed that the Registration Statement was allegedly false and misleading because the Company overstated the value of the Alaska Assets.

Plaintiffs further alleged that when the alleged truth regarding the value of the Alaska Assets was revealed, alleged artificial inflation was removed from the price of Miller Energy Series C and Series D Preferred Stock, damaging Settlement Class Members. In September 2015, Miller Energy’s Series C and Series D Preferred Stock were delisted after a more than 98% decline in their value.