Christina Spicer  |  February 10, 2021

Category: Legal News

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Oilfield data co. agrees to pay $3.5 million to end investor fraud class action.

An oilfield service company has reportedly agreed to a $3.5 million settlement to revolve claims of investor fraud.

In 2019, lead plaintiffs Tony Tep and Amrit Kumar accused SAExploration Holdings Inc. of misleading investors after the company was the subject of a regulatory investigation into its revenue reports and accounting practices. As a result of the regulatory action, the Security and Exchange Commission (SEC) and company agreed to settle for an undisclosed amount; however, SAE was not required to award any money to investors or disgorge any profit.

A key issue in the SEC investigation was an allegation that the oilfield service company inflated its revenue by $141 million in investor reports. In addition, the class action lawsuit claimed that investors lost money when the regulatory probe was announced as SAE share prices plummeted 34 percent upon the announcement.

Further, the oilfield service company reportedly failed to classify another company correctly or disclose its controlling interest in financial reports spanning 2015 through 2018.

In addition, SAE reportedly experienced a recent Chapter 11 bankruptcy proceeding, further muddying the waters for potential recovery in the investor class action lawsuit.

“There are invariably risks associated with litigating a complex case such as this — particularly where, as here, defendants have denied and continue to deny each, any, and all allegations of wrongdoing, fault, liability, or damage whatsoever that have or could have been asserted in the Amended Complaint,” states the motion seeking preliminary approval of the settlement.

The oilfield service company refuses to admit any liability under the terms of the $3.5 million settlement agreement. If approved by the Texas federal court, Class Members will include those who purchased SAE stock between March 15, 2016 and August 2019.

Are you an SAE investor? Did you experience losses as a result of the oilfield service company’s allegedly dodgy accounting practices? Tell us about it in the comment section below.

The lead plaintiffs and Class Members are represented by Reed Kathrein, Danielle Smith, Lucas Gilmore, and Steve Berman of Hagens Berman Sobol Shapiro LLP; Phillip Kim, Laurence Rosen, and Brent LaPointe of the Rosen Law Firm; Marion Reilly and John Martinez of Hilliard Martinez; and Stuart L. Cochran and Braden M. Wayne of Steckler Wayne Cochran PLLC.

The SAE Investor Fraud Class Action Lawsuit is John Bodin et al. v. SAExploration Holdings Inc. et al., Case No. 4:19-cv-03089, in the U.S. District Court for the Southern District of Texas.

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

One thought on $3.5M Settlement in Oilfield Service Co. Investor Fraud Class Action

  1. LISA HAWKINS says:

    Please add me

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.