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Berry Corporation Class Action Lawsuit

Company Name
Berry Corporation
Stock Symbol
BRY
Class Period
July 26, 2018 to November 3, 2020
Court
Northern District of Texas

Case Summary

The Berry Corporation class action lawsuit charges Berry Corporation and certain of its executives and directors with violations of the Securities Act of 1933 and/or the Securities Exchange Act of 1934.  The Berry Corporation class action lawsuit seeks to represent purchasers or acquirers of Berry Corporation common stock pursuant and/or traceable to Berry Corporation’s initial public offering conducted on or about July 26, 2018 (the “IPO”); or (b) Berry Corporation securities between July 26, 2018 and November 3, 2020, both dates inclusive (the “Class Period”).  The Berry Corporation class action lawsuit was filed in the Northern District of Texas and is captioned Torres v. Berry Corporation, No. 20-cv-03464.

Berry Corporation is an independent upstream energy company that engages in the development and production of conventional oil reserves located in the western United States.  Berry Corporation’s properties are located in the San Joaquin and Ventura basins in California; the Uinta basin in Utah; and the Piceance basin in Colorado.  Berry Corporation was formerly known as Berry Petroleum Corporation and changed its name to Berry Corporation in February 2020.

On June 29, 2018, Berry Corporation filed its Registration Statement on Form S-l for the IPO, which, after an amendment, was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on July 25, 2018 (the “Registration Statement”).  On or around July 26, 2018, Berry Corporation conducted the IPO, issuing 13 million shares of Berry Corporation common stock at $14 per share, generating over $138 million in proceeds before expenses.  On July 27, 2018, Berry Corporation filed its Prospectus on Form 424B4 with the SEC (the “Prospectus” and, collectively with the Registration Statement, the “Offering Documents”).

The Berry Corporation class action lawsuit alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact, omitted material facts necessary to make the statements contained therein not misleading, and failed to make necessary disclosures required under the rules and regulations governing their preparation.  The Berry Corporation class action lawsuit further alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Berry Corporation had materially overstated its operational efficiency and stability; (ii) Berry Corporation’s operational inefficiency and instability would foreseeably necessitate operational improvements that would disrupt Berry Corporation’s productivity and increase costs; (iii) the foregoing would foreseeably negatively impact Berry Corporation’s revenues; and (iv) as a result, the Offering Documents and Berry Corporation’s public statements were materially false and/or misleading and failed to state information required to be stated therein.

On November 3, 2020, Berry Corporation reported its financial and operating results for the third quarter of 2020, which included non-GAAP earnings per share and revenue that both fell short of estimates.  In addition, Berry Corporation reported that during the quarter, Berry Corporation “undertook certain operational improvements that caused temporary reductions in [its] production.  Notably, [Berry Corporation] performed some plugging and abandonment activity that resulted in temporary shut-in of nearby wells.  Additionally, improved steam management reduced overall costs but temporarily increased water disposal and well maintenance needs, resulting in a slight decrease in production.”  On this news, Berry Corporation’s stock price fell more than 5% – representing a nearly 81% decline from the IPO price.

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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