Reconnaissance Energy Africa Ltd. Class Action Lawsuit - RECAF
- Company Name
- Reconnaissance Energy Africa Ltd.
- Stock Symbol
- Class Period
- February 28, 2019 to September 7, 2021
- Motion Deadline
- December 24, 2021
- Eastern District of New York
The ReconAfrica class action lawsuit seeks to represent purchasers of Reconnaissance Energy Africa Ltd. f/k/a Lund Enterprises Corp. (“ReconAfrica”) (OTCMKTS: RECAF; LGDOF) publicly traded securities between February 28, 2019 and September 7, 2021, inclusive (the “Class Period”) and charges ReconAfrica as well as certain of its top officials with violations of the Securities Exchange Act of 1934. The ReconAfrica class action lawsuit was commenced on October 25, 2021 in the Eastern District of New York and is captioned Muller v. Reconnaissance Energy Africa Ltd. f/k/a Lund Enterprises Corp., No. 21-cv-05910.
If you wish to serve as lead plaintiff of the ReconAfrica class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the ReconAfrica class action lawsuit must be filed with the court no later than December 27, 2021.
CASE ALLEGATIONS: ReconAfrica purports to engage in the identification, exploration, and development of oil and/or gas assets in Namibia and Botswana, including in the Kalahari Desert and other fragile areas.
The ReconAfrica class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose: (i) ReconAfrica’s plan for using unconventional means for energy extraction (including fracking) in the fragile Kavango area; (ii) that ReconAfrica would begin unlicensed drilling tests; (iii) that ReconAfrica would illegally use water for well testing; (iv) that ReconAfrica would illegally store used water in unlined pools; (v) that ReconAfrica would skirt Namibian law and hire an inadequate and inappropriate consultant; (vi) that, as a result, ReconAfrica risked future well, drilling, and water-related licenses in Namibia and Botswana; (vii) that, contrary to its representations, ReconAfrica did not reach out nor provide adequate information (including in relevant local languages) through accessible means to those to be impacted by its testing and potential energy extraction; (viii) that ReconAfrica’s interests are in the Owambo Basin, not the so-called Kavango Basin; (ix) that ReconAfrica has continuously engaged in stock pumping; and (x) as a result of the foregoing, defendants’ public statements were materially false and/or misleading at all relevant times.
On October 28, 2020, National Geographic published an article entitled “Oil drilling, possible fracking planned for Okavango region – elephants’ last stronghold,” outlining ReconAfrica’s social, legal, and environmental obligations and practices as well as its unconventional extraction interests, noting that “[e]xperts who have reviewed the Namibian environmental impact assessment for [ReconAfrica’s] test wells point to serious problems in the way it was carried out.” On this news, ReconAfrica’s share price fell approximately 6%.
Then, on January 28, 2021, National Geographic published an article entitled “Test drilling for oil and gas begins in Namibia’s Okavango region,” which reported among other things that “[p]art of the anger many Namibians hold stems from the sense, they say, that they were left out of the initial environmental assessment process, which paved the way for ReconAfrica to get a permit to drill test wells.” On this news, ReconAfrica’s share price fell approximately 6%.
Thereafter, on March 8, 2021, Maggy Shino, the Petroleum Commissioner in the Namibian Ministry of Mines and Energy issued a media release entitled “RECONNAISANCE ENERGY OPERATIONS IN NAMIBIA” which stated among other things that “[w]e can confirm to the nation that no license to conduct fracking activities was granted to Reconnaissance Energy by the Ministry and no such license is being contemplated” and that “[t]he Ministry is working closely with Reconnaissance Energy and the Ministry of Environment and Tourism to ensure that the current drilling and future operations are performed in an environmentally sound manner.” On this news, ReconAfrica’s share price fell approximately 7%.
The following month, on April 22, 2021, Yale Environment 360 published an article entitled “A Big Oil Project in Africa Threatens Fragile Okavango Region” which reported among other things that “[t]he 2019 environmental impact assessment (EIA) commissioned by ReconAfrica was widely criticized for glossing over potential ecological problems. Experts cited, among other things, the lack of specialist reports pertaining to flora and fauna.” On this news, ReconAfrica’s share price fell approximately 16%.
Less than a month later, on May 11, 2021, National Geographic published an article entitled “Oil company exploring in sensitive elephant habitat accused of ignoring community concerns,” reporting among other things that ReconAfrica was “disposing of wastewater without permits, according to a government minister. The company is also ignoring local concerns about the impact of exploration and drilling on water supplies, homes, and animals, according to interviews and official comments submitted by members of the public.” On this news, ReconAfrica’s share price fell approximately 6%.
The following day, on May 12, 2021, New Era, a Namibian newspaper, published an article entitled “ReconAfrica still years away from commercial drilling,” reporting among other things that ReconAfrica had “not applied for, nor been granted or given any licences [sic] that may allow or support fracking, or any other form of ‘unconventional’ energy exploration.” On this news, ReconAfrica’s share price fell nearly 20%.
Later that month, on May 26, 2021, Namibia’s Minister of Agriculture, Water and Land Reform tweeted that “[t]he MAW&LR has the mandate to manage and regulate water resources within the territory of Namibia. It is therefore important to reconfirm that Re-Con Africa [sic] has applied to drill boreholes, for both exploration and abstraction and purposes. Sofar [sic] however no permit has been issued.” On this news, ReconAfrica’s share price fell.
On June 24, 2021, Viceroy Research published a report entitled “ReconAfrica – No Oil? Pump Stock: Drilling blind for oil in Namibia: ReconAfrica is a stock-promoted junior explorer drilling imaginary oil basins in a fragile ecosystem. A disaster waiting to happen.” On this news, ReconAfrica’s share price fell approximately 17%.
Then, on July 14, 2021, Viceroy Research published a report entitled “ReconAfrica – Polarization & Disengagement,” noting among other things that “[d]espite being asked on multiple occasions if ReconAfrica would categorically state no fracking would be conducted, [a company representative] avoided the question and cut off members of the gallery, one time even stating that she ‘won’t be around’ at that point.” On this news, ReconAfrica’s share price fell approximately 8%.
Subsequently, on August 16, 2021, Viceroy Research published a report entitled “ReconAfrica – Drilling Update Response: Disappointing drill results confirm ReconAfrica’s ‘Kavango deep’ basin is geofantasy as their promotional claims unravel,” claiming that “[f]ar from a success, results have failed to live up to [ReconAfrica’s] exaggerated claims of a world-class reservoir and instead showed an area of limited to negligible production potential.” On this news, ReconAfrica’s share price fell approximately 8%.
Finally, on September 7, 2021, Viceroy Research published a report entitled “ReconAfrica – Another swing, another miss: Despite significant polish, Netherland Sewell’s presentation on ReconAfrica’s 6-2 well is another set of disappointing results,” further claiming that ReconAfrica’s “presentation is a clear attempt to put a positive spin on disappointing drill results but fails to do so under further scrutiny.” On this news, ReconAfrica’s share price fell approximately 12%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased ReconAfrica securities during the Class Period to seek appointment as lead plaintiff in the ReconAfrica 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 ReconAfrica class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the ReconAfrica class action lawsuit. An investor’s ability to share in any potential future recovery of the ReconAfrica class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.