Apache Corporation Class Action Lawsuit

Company Name
Apache Corporation
Stock Symbol
Class Period
September 7, 2016 to March 13, 2020
Motion Deadline
April 24, 2021
Southern District of Texas
12 days left to seek lead plaintiff status

Case Summary

The Apache Corporation class action lawsuit charges Apache and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Apache common stock between September 7, 2016 and March 13, 2020, inclusive (the “Class Period”).  The Apache class action lawsuit was commenced on February 23, 2021 in the Southern District of Texas and is captioned Plymouth County Retirement System v. Apache Corporation, No. 21-cv-00575.

Apache is an independent energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids.  At all relevant times, one of Apache’s purported key “core growth areas” was the Permian region in West Texas and New Mexico.

The Apache class action lawsuit alleges that, throughout the Class Period, defendants made materially false and misleading statements about Apache’s operations and financial health, including the viability and profitability of a purported large oil-and-gas resource play in the Permian Basin called Alpine High.  Specifically, the Apache class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) Apache intentionally used unrealistic assumptions regarding the amount and composition of available oil and gas in Alpine High; (ii) Apache did not have the proper infrastructure in place to safely and/or economically drill and/or transport those resources even if they existed in the amounts purported; (iii) these misleading statements and omissions artificially inflated the value of Apache’s operations in the Permian Basin; and (iv) as a result, Apache’s public statements were materially false and misleading at all relevant times.

On April 23, 2019, Apache announced that it had begun a “[t]emporary” deferral of natural gas production at Alpine High.  On this news, Apache’s stock price fell nearly 11% over the next four trading days.

Then, on October 25, 2019, Apache’s Senior Vice President of Worldwide Exploration, Steven Keenan, abruptly resigned from Apache.  On this news, Apache’s stock price fell approximately 5%.

Thereafter, on March 12, 2020, Apache announced that it had slashed its quarterly dividend by 90% and was significantly reducing planned capital expenditures for the rest of 2020.  On this news, the price of Apache common stock fell approximately 6%.

Finally, on March 16, 2020, Seeking Alpha published an article noting that Apache was particularly challenged amongst its peers, carrying “the highest debt-to-equity ratio among large-cap independent [exploration and production companies]” and that “[t]he company doesn’t have a strong balance sheet” and its “financial health isn’t great.”  The article further observed that low gas prices had “forced Apache to shift capital away from the wet-gas rich Alpine High play which has been driving the company’s production growth.”  The article also noted that “Apache also reduced Alpine High’s value by $1.4 billion.”  In response to this news and other investment research downgrades, Apache’s stock price fell approximately 45%, over two trading days, further damaging investors.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Apache common stock during the Class Period to seek appointment as lead plaintiff in the Apache class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Apache class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Apache class action lawsuit.  An investor’s ability to share in any potential future recovery of the Apache class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Apache class action lawsuit or have questions concerning your rights regarding the Apache class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Apache class action lawsuit must be filed with the court no later than April 26, 2021.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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