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UPDATE 1-Forest Oil sued over Lone Pine IPO
May 29, 2012 / 11:43 AM / in 5 years

UPDATE 1-Forest Oil sued over Lone Pine IPO

May 29 (Reuters) - Forest Oil Corp said a lawsuit was brought against it and Lone Pine Resources Inc , which it earlier owned, that alleged Lone Pine made false statements and hid certain facts in its initial public offering prospectus.

The lawsuit claims that Lone Pine’s IPO prospectus contained untrue statements or omitted material facts related to forest fires in Northern Alberta in May 2011 and the rupture of a third party oil sales pipeline in Northern Alberta in April 2011, Forest Oil said in a regulatory filing.

The lawsuit was brought as a purported class action in the Supreme Court of the State of New York, New York County, on Friday.

The complaint also made a claim against Forest Oil since it was a “control person” of Lone Pine at the time of the IPO.

Forest, a oil and natural gas company, said the claims were without merit and it intended to fight them Vigorously.

Lone Pine shares debuted in May last year. Lone Pine had sold 15 million shares at $13 each in an IPO on the New York Stock Exchange.

Forest Oil spun off Lone Pine last September. After the IPO, Forest Oil owned 82.3 percent of Lone Pine’s common stock, which it had planned to distribute to its shareholders within four months.

The lawsuit was also brought against certain underwriters of Lone Pine’s IPO but it did not name the underwriters.

JPMorgan, Credit Suisse and TD Securities had led the underwriters for the IPO.

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