November 20, 2020 - An investor in shares of Berry Corporation (NASDAQ: BRY) filed a lawsuit in the U.S. District Court for the Northern District of Texas over alleged violations of Federal Securities Laws by Berry Corporation in connection with certain allegedly false and misleading statements made between July 26, 2018 and November 3, 2020.

Dallas, TX based Berry Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States.

On or about July 27, 2018 Berry Corporation commenced an initial public offering (“IPO”), issuing 13,043,479 shares of common stock to the investing public at $14 per share. Berry Corporation reported that its annual Total Revenue declined from $586.55 million in 2018 to $559.4 million in 2019, and that its Net Income declined from $147.10 million in 2018 to $43.53 million in 2019.

On November 3, 2020, post-market, Berry Corporation reported its financial and operating results for the third quarter of 2020. Among other results, Berry reported non-GAAP EPS and revenue that both fell short of estimates. In addition, Berry reported that during the quarter, the Company undertook certain operational improvements that caused temporary reductions in our production. Notably, we performed some plugging and abandonment activity that resulted in the temporary shut-in of nearby wells.

Additionally, improved steam management reduced overall costs but temporarily increased water disposal and well maintenance needs, resulting in a slight decrease in production. Shares of Berry Corporation (NASDAQ: BRY) declined to $2.52 per share on November 4, 2020.

According to the complaint the plaintiff alleges, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Offering Documents that were filed in connection with the company’s IPO and that the Defendants made false and/or misleading statements and/or failed to disclose that Berry had materially overstated its operational efficiency and stability, that Berry's operational inefficiency and instability would foreseeably necessitate operational improvements that would disrupt the Company's productivity and increase costs, that the foregoing would foreseeably negatively impact the Company's revenues, and that as a result, the Offering Documents and the Company's public statements were materially false and/or misleading and failed to state information required to be stated therein.