SAN FRANCISCO, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Brooge Energy Limited (NASDAQ: BROG) investors who suffered substantial losses to submit your losses now.
Class Period: Nov. 25, 2019 – Dec. 21, 2023
Lead Plaintiff Deadline: Apr. 5, 2024
Visit: www.hbsslaw.com/investor-fraud/brog
Contact An Attorney Now: BROG@hbsslaw.com
844-916-0895
Brooge Energy Limited (BROG) Securities Fraud Class Action:
The complaint alleges Brooge made misleading statements and failed to disclose that it: (1) overstated revenues because it never received any revenues from related party A1 Brooge International Advisory LLC (“BIA”), as well as from another fake customer (“Customer A”); (2) engaged in a complex pattern of payments with BIA to create the illusion of revenues from BIA and another customer who had no knowledge of the fraud; (3) intentionally lied to its auditors and the SEC about its fraudulent activities; and (4) lacked internal controls.
Investors learned the truth on Dec. 22, 2023, when the SEC announced it fined Brooge Energy $5 million and issued a cease-and-desist order against Brooge, its former CEO (Nicolaas Lammert Paardenkooper), and its former Chief Strategy Officer and former Interim CEO (Lina Saheb).
The SEC found that the company falsely represented to investors that it had a single customer contractually obligated to rent 100% of its oil storage capacity and certain other services at specific rates, thereby producing revenue of approximately $44 million per year.
The SEC’s order revealed that “[i]n reality, actual customers used a smaller portion of the storage capacity and almost no ancillary services, at rates specified in the single-customer contract[]” and “[t]he difference was addressed through an accounting scheme that relied upon a false second set of invoices” involving BIA and Customer A. Using this scheme, Brooge recorded over $70 million of fake revenues.
This news sent the price of Brooge shares crashing over 15% lower on Dec. 22, 2023, to close at $3.34 per share.
Previously, Paardenkooper abruptly resigned on Dec. 8, 2022, just a few months after the SEC commenced its investigation. Saheb followed suit several months later.
“We believe investors may have suffered substantial damages as a result of Defendants’ alleged fraud, but they will not be adequately compensated by the SEC’s settlement,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Brooge Energy and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman »
If you’d like more information and answers to frequently asked questions about the Brooge Energy case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Brooge Energy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email BROG@hbsslaw.com .
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
