October 7, 2008
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit on Behalf of Investors in Quest Resource Corporation (QRCP) and Quest Energy Partners, LP (QELP).
The law firm Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit in the United States District Court for the Western District of Oklahoma on behalf of a class (the "Class") consisting of all persons who purchased the common units of Quest Energy Partners L.P. ("Quest Energy" or the "Company") (NasdaqGM:QELP) pursuant and/or traceable to the Company's Registration Statement and Prospectus issued in connection with the Company's Initial Public Offering (the "IPO") on November 7, 2007 through August 25, 2008, and on behalf all persons who purchased the securities of Quest Resource Corporation ("Quest Resource" or the "Company") (NasdaqGM:QRCP) between May 2, 2005 through August 25, 2008 (the "Class Period").
The Complaint charges Quest Energy and its parent company, Quest Resource, among others, with violations of federal securities laws. Quest Resource is engaged in the exploration, development, production and transportation of natural gas. Quest Energy is the gas and oil production operation arm of Quest Resource and engages in the acquisition, exploitation and development of oil and natural gas properties. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Quest Resource, and Quest Energy's business and operations were materially false and misleading. Specifically, the Complaint alleges that defendants failed to disclose that related party transactions, which existed at the time of Quest Energy's IPO, between Quest Energy and Rockport Energy -- an entity controlled by Quest Energy's chief executive officer, violated Generally Accepted Accounting Principles and SEC regulations. These failures by defendants caused Quest Resource's disclosures on related party transactions to be materially incomplete and false.
On August 25, 2008, the Company announced, among other things, the resignation of its CEO, Jerry Cash, the formation of a Joint Special Committee to conduct an investigation of improper transfers of Company funds by Cash to Rockport Energy, and an inquiry launched by the Oklahoma Department of Securities in connection with the improper transfers.
This announcement shocked the market and caused the Company's stock to fall $2.05 per share, or nearly 30%, to $4.88 per share on August 25, 2008. The lawsuit seeks to recover damages on behalf of Class members.
If you are a member of the Class, you may, no later than November 4, 2008, request that the Court appoint you as Lead Plaintiff of the Class. Any member of the purported Class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent Class member.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago, San Francisco, and London, and is active in major litigation pending in federal and state courts throughout the nation. A copy of the Complaint can be found on the firm's website at www.cmht.com.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq. Javier Morla Cohen, Milstein, Hausfeld & Toll, P.L.L.C. 1100 New York Avenue, N.W. West Tower, Suite 500 Washington, D.C. 20005 Telephone: (888) 240-0775 or (202) 408-4600 Email: [email protected] or [email protected]