Penalty leads to class-action suit against Range Resources

 

The Oklahoma City law firm of Federman & Sherwood filed a class action lawsuit in Pennsylvania against Fort Worth-based Range Resources Corporation accusing it of artificially inflating the value of its stock over the past five years.

The lawsuit, filed in the Western District of the U.S. District Court in Pennsylvania alleges violations of federal securities laws.  It alleges the company made false and misleading statements and failed to disclose material adverse facts about the company’s business.

The suit says Range was the target of a Pennsylvania Department of Environmental Protection investigation from 2017 to January of 2021 for improperly designating the status of its wells. It led to a $294,000 civil penalty paid by Range Resources on January 8 of this year for violating the 2012 Oil and Gas Act.

The penalty resulted in the filing of the lawsuit which contends as a result of the probe and the fine, the company’s public statements were false and misleading.

The investigation by the DEP found Range had put 42 of its conventional wells in Pennsylvania  on a list of reported “inactive status” and were supposed to be plugged. The suit says that as of last month, Range Resources’ stock fell more than 6% and seeks to recover damages from the company.