Lawsuit filed for Investors in shares of Camber Energy, Inc. (NYSE: CEI)

An investor, who purchased shares of Camber Energy, Inc. (NYSE: CEI), filed a lawsuit in the U.S. District Court for the Southern District of Texas over alleged violations of Federal Securities Laws by Camber Energy, Inc. in connection with certain allegedly false and misleading statements made between February 18, 2021 and October 4, 2021.

Investors who purchased shares of Camber Energy, Inc. (NYSE: CEI) have certain options and for certain investors are short and strict deadlines running. Deadline: December 28, 2021. NYSE: CEI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

In December 2020, Camber Energy, Inc acquired a controlling interest in Viking Energy Group, Inc. (“Viking”), a purported independent exploration and production company.

Then, in February 2021, Camber Energy, Inc executed a definitive merger agreement with Viking to effect the full combination of the two entities (the “Merger”).

The plaintiff says that throughout 2021, Camber Energy, Inc has failed to timely file required financial statements with the U.S. Securities and Exchange Commission (“SEC”), and that as a result, financial reporting services such as Yahoo! Finance and Bloomberg were forced to rely on infrequent and outdated updates in SEC filings to estimate the Company’s shares of common stock issued and outstanding. For example, before a recent update by the Company on October 6, 2021, the widely-reported estimate of the Company’s shares of common stock issued and outstanding amounted to 104.2 million, which itself was based on a filing the Company made with the SEC on July 12, 2021. When the Company provided an update on October 6, 2021, it reported 249.6 million shares of stock issued and outstanding, a significantly higher figure.

On May 24, 2021, Viking filed a quarterly report on Form 10-Q with the SEC, reporting the Company’s financial and operating results for the quarter ended March 31, 2021. That quarterly report disclosed, among other results, first-quarter earnings per share (“EPS”) of -$0.13 under generally accepted accounting principles (“GAAP”), compared to GAAP EPS of $1.39 in the same quarter the year prior, representing a 109.35% decrease year-over-year (“Y/Y”), and first-quarter revenue of $10.49 million, compared to revenue of $11.79 million in the same quarter the year prior, representing an 11% decrease Y/Y.

Later that day, Camber Energy, Inc issued a press release disclosing that, on May 21, 2021, the NYSE had notified the Company that it was not in compliance with the NYSE’s continued listing standards because of, inter alia, “issues that have arisen in connection with . . . finalizing the determination of the fair values of both assets and liabilities associated with the Company’s acquisition of a controlling interest in Viking . . . in December of 2020[.]”

Then, on August 16, 2021, Viking filed a quarterly report on Form 10-Q with the SEC, reporting its financial and operating results for the quarter ended June 30, 2021. That quarterly report disclosed, among other results, a net loss of $9.85 million for the quarter, and that, “[a]s of June 30, 2021, [Viking] has a stockholders’ deficit of $15,054,324 and total long-term debt of $95,961,611.”

On October 5, 2021, market analyst Kerrisdale Capital published a report entitled "Camber Energy, Inc. (CEI): What If They Made a Whole Company Out of Red Flags?" The report stated that the Company "has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September." The report alleged that Camber only has one real asset, a 73% stake in an OTC-traded company, Viking Energy Group, Inc., with negative book value and a going-concern warning that recently violated the maximum-leverage covenant on one of its loans. The report further alleged that the company's "'ESG Clean Energy' technology license is a joke." Finally, the report also alleged that "the most fascinating part of the CEI boondoggle actually has to do with something far more basic: how many shares are there, and why has dilution been spiraling out of control?" and that the "market is badly mistaken about Camber's share count and ignorant of [Camber's] terrifying capital structure," estimating the Company's "fully diluted share count is roughly triple the widely reported number."

Shares of Camber Energy, Inc. (NYSE: CEI) declined from $4.85 per share on September 29, 2021, to $0.86 per share on October 6, 2021.

The plaintiff claims that between February 18, 2021 and October 4, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that Camber Energy, Inc overstated the financial and business prospects of Viking as well as the combined company post-Merger, that Camber Energy, Inc failed to apprise investors of, and/or downplayed, the fact that its acquisition of a controlling interest in Viking would exacerbate the Company’s delinquent financial statements and listing obligations with the NYSE, that an institutional investor was diluting Camber’s shares at a significant rate following the Company’s July 12, 2021 update regarding the number of its shares of common stock issued and outstanding, and that as a result, the Company’s public statements were materially false and misleading at all relevant times.

Those who purchased shares of Camber Energy, Inc. (NYSE: CEI) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.