Liberty Oilfield Services Inc. and investors who say it made misleading statements ahead of a 2018 initial public offering may move forward with a $3.9 million settlement, a federal judge in Colorado said.
The cash deal recovers about 3.9% of maximum potential damages, the hydraulic fracking services company’s investors told the US District Court for the District of Colorado in their initial settlement motion, which Judge Raymond P. Moore approved.
Investors accuse Liberty Oilfield of misleading them about how a fracking capacity surplus relative to demand negatively affected prices. Moore in 2021 trimmed some investor allegations and allowed others to proceed to the next stage. The company denies any wrongdoing.
The settlement covers investors who acquired Liberty Oilfield’s publicly available common stock in or traceable to the Jan. 11, 2018, IPO through April 3, 2020, according to the stipulation of settlement. The deal excludes those with certain close ties to the company.
Investors have until Sept. 16 to submit proof of claim forms through a website listed in Moore’s Tuesday order or request exclusion from the class.
Rosen Law Firm PA, lead counsel to the investors, plans to seek up to one third of the settlement fund—$1.3 million—in attorneys’ fees. That’s “well within the range of percentage fees that are regularly awarded in securities class actions and contingency fee class actions in the Tenth Circuit,” the investors said in their May 13 motion. The firm will also ask for no more than $65,000 as reimbursement for its litigation expenses.
Shearman & Sterling LLP and Haynes & Boone LLP represent Liberty Oilfield.
The case is Correa v. Liberty Oilfield Servs. Inc., 2022 BL 170678, D. Colo., No. 1:20-cv-00946, preliminary settlement approval 5/17/22.
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