Provident Royalties / Shale Royalties Class Action Lawsuit (Alleged Ponzi Scheme)
Did you invest in Provident Royalties, Shale Royalties or Provident Energy LP?
In July 2009, the SEC formally charged Provident Royalties LLC, Provident Asset Management LLC and its founders with securities fraud in connection with an alleged $485 million Ponzi scheme to defraud natural gas and oil investors. The SEC civil complaint charges that Provident made a series of fraudulent offerings of preferred stock and limited partnership interests and sold them to approximately 7,700 investors between June 2006 and January 2009. It is alleged that Provident promised investors annual returns of up to 18 percent from investments in oil and gas real estate, leases, and mineral rights, but failed to disclose that a significant portion of investors' funds were being used to pay previous investors.
Class Action Lawsuit Filed- Girard Gibbs Appointed Interim Co-Lead Counsel
Girard Gibbs filed one of the first class action lawsuits on behalf of all investors who, from September 1, 2006 until January 31, 2009 (the "Class Period"), purchased or acquired partnership interests, preferred stock, or other securities issued by certain affiliates of Provident Royalties LLC, including corporations designated as "Provident Royalties" or "Shale Royalties." The named defendants in the lawsuit include the broker-dealers who sold the securities to investors through a series of private placement offerings, such as Securities America, Inc., CapWest Securities, Inc., Next Financial Group, Inc., and QA3 Financial Corp.
Case Update
On November 5, 2009, U.S. District Judge Royal Furgeson appointed Girard Gibbs LLP and Zwerling, Schachter & Zwerling LLP (“ZSZ”) as Interim Co-Lead Counsel in the consolidated case. As co-lead counsel, Girard Gibbs and ZSZ will be responsible for conducting and coordinating pretrial proceedings in the litigation on behalf of all plaintiffs in the case.
VIEW NOVEMBER 5, 2009 ORDER
For More Information
If you invested in Provident Royalties or any of its affiliated entities and would like to information regarding your legal rights, please fill out the form on the right or call toll-free (866) 981-4800.
Why Girard Gibbs LLP?
Girard Gibbs is a national litigation firm specializing in securities litigation, consumer class actions and complex business litigation. Girard Gibbs' managing partner Daniel Girard was voted one of Northern California's Super Lawyers in 2007, 2008, and 2009 by Law & Politics, recognizing him as one of the top 5-percent of attorneys practicing in Northern California.
