On March 19, 2019, E&C filed a securities class action in the Southern District of Texas, asserting claims under Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 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.  The complaint was brought on behalf of:  (1) persons or entities, excluding Defendants, that purchased or otherwise acquired securities of Alta Mesa during the period August 16, 2017 through May 17, 2019, inclusive (the “Class Period”), and were damaged thereby, and (2) Silver Run Class A shareholders as of the January 22, 2018 record date that were entitled to vote on the proposed acquisition (the “Business Combination”) of Alta Mesa Holdings, LP (“AMH”) and Kingfisher Midstream LLC (“Kingfisher”).   

The complaint alleges that, during the Class Period, the Defendants made materially false and misleading statements and failed to disclose material adverse facts concerning Silver Run’s Business Combination with AMH and Kingfisher. Specifically, the complaint alleges that:  (1) Silver Run misled investors in order to complete the acquisition of AMH and Kingfisher; (2) the Defendants failed to disclose operational setbacks that started to impact Alta Mesa and Kingfisher prior to the Business Combination; and (3) the Defendants failed to disclose material weaknesses with the Company’s internal controls over financial reporting.  As a result of the Defendants’ allegedly false and misleading statements and omissions, Silver Run securities traded at artificially inflated prices during the Class Period.  The complaint also alleges that Silver Run issued a false and misleading proxy statement in order to induce shareholders to vote in favor of the proposed transaction.  The disclosure of the Company’s wrongdoing led to a 99% drop in the Company’s stock price during the Class Period and the Company ultimately filing for bankruptcy protection on September 11, 2019. 

On January 16, 2020, the Court consolidated the related actions in the Southern District of Texas and appointed E&C as Co-Lead Counsel.  Lead Plaintiffs filed an amended complaint on April 6, 2020 (the “Amended Complaint”).  The Amended Complaint alleges claims against Riverstone Holdings, LLC, Bayou City Energy Management, LLC, HPS Investment Partners, LLC, ARM Energy Holdings LLC and several of Alta Mesa Resources, Inc.’s officers and directors.

Defendants filed eight separate motions to dismiss the Amended Complaint on June 30, 2020.  Lead Plaintiffs filed their opposition to these motions on August 31, 2020.  Defendants filed their replies on October 14, 2020.  The Court entered an order denying the motions to dismiss on March 31, 2021.

On December 6, 2021, Lead Plaintiffs filed a Third Amended Complaint naming Alta Mesa Resources, Inc. as an additional defendant.

E&C has 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.)).

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

Third Amended Complaint

Order Denying Motions to Dismiss

Memorandum Opinion and Order Denying Motions to Dismiss