E&C serves as Co-Lead Counsel in this securities class action pending in the Southern District of Texas before the Honorable George C. Hanks, Jr.  On March 19, 2019, E&C filed an initial complaint on behalf of one of its institutional clients against Alta Mesa Resources, Inc. (“Alta Mesa”) f/k/a Silver Run Acquisition Corporation II (“Silver Run” or “the Company”) and certain of its senior executives, asserting claims under Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934.

Silver Run II was sponsored by private equity firm Riverstone Holdings.  In August 2017, Silver Run II announced it had agreed to merge with two privately owned oil and gas companies, Alta Mesa Holdings (“AMH”) and Kingfisher Midstream (“Kingfisher”).  Between August 2017 and January 2018, Riverstone and the incumbent management of AMH and Kingfisher engaged in a proxy roadshow to solicit approval from the SPAC’s shareholders for the proposed merger.  Class Plaintiffs allege that statements made by certain Defendants during the 2017 roadshow presentations and in the Definitive Proxy Statement issued in January 2018 in connection with the “de-SPAC” transaction misled SPAC investors about the business prospects of AMH and Kingfisher.

During the pendency of the litigation, E&C successfully opposed eight separate motions to dismiss filed by the various Defendants.  E&C then led extensive discovery efforts, including reviewing hundreds of thousands of documents, conducting dozens of depositions and proffering numerous experts in the fields of oil and gas, accounting and financial damages.  E&C also obtained certification of the Class of Alta Mesa investors, which was unopposed after voluminous related fact and expert discovery.

E&C also appeared as counsel for its clients and the Class in the related bankruptcy action (In re Alta Mesa Resources, Inc., et al, No. 19-35133 (MI) (S.D. Tex.)).

On August 12, 2024, Judge Hanks denied the primary Defendants’ motions for summary judgment based on Co-Lead Counsel’s extensive briefing.  A jury trial on the core claims against Defendants Riverstone, Alta Mesa and several individuals commenced on November 6, 2024 in Houston, Texas.  Class Plaintiffs and the remaining Defendants ultimately agreed to settle the case for $126.3 million on cash, and the trial was stayed on December 10, 2024.

The Court preliminarily approved the settlement on January 17, 2025, and has set a final approval hearing for April 30, 2025 at 11:00 a.m.

If approved by the Court, the proposed settlement will constitute the largest-ever securities class action recovery involving a SPAC.

 

To view the relevant documents in this matter, please use the following links:

Third Amended Complaint

Memorandum Opinion and Order Denying Motions to Dismiss

Memorandum Opinion and Order Denying Motions for Summary Judgment

Order Preliminarily Approving Settlement and Providing for Notice

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