NEW YORK, March 15, 2016 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against Vanguard Natural Resources, LLC ("Vanguard or the "Company") (NASDAQ: VNR). The class action has been filed in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who beneficially held 7.875% Senior Notes due 2020 from February 10, 2016 to the present.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
Vanguard Natural Resources, LLC, through its subsidiaries, acquires and develops oil and natural gas properties in the United States.
On January 8, 2016, Vanguard announced a proposed private debt exchange through which it would exchange and replace certain 2020 Notes for newly-issued 7.0% Senior Secured Second Lien Notes due 2023 ("the Exchange Offer"). This proposal included only Qualified Institutional Buyers—mostly bondholders who own and invest at least $100 million in securities—and persons located outside of the U.S. Therefore, plaintiff and class members could not participate and they did not receive any documents informing them of how the Exchange Offer would affect their interests. Additionally, Vanguard did not disclose the risk of this Exchange Offer in its offering prospectus for the 2020 Notes, and could not have been foreseen by the class members at the time they purchased their 2020 Notes.
The Complaint alleges that Vanguard administrators knew that the Exchange Offer would negatively impact the liquidity, marketability, and market price of the 2020 Notes, and concealed this information from the class members. Vanguard officials benefited from The Exchange Offer at the expense of the class members, whose 2020 Notes dropped in value. Vanguard's choice to pursue the transaction benefiting only a minority of 2020 Note holders allegedly violated the implied covenant of good faith and fair dealing. The obligations in the 2020 Notes were made secondary to the obligations in the 2023 Notes, weakening class members' right to receive payment of the principal and interest under the 2020 Notes and the right to sue to compel such payment.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website: http://www.bgandg.com/#!vnr/i154b. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Vanguard Natural Resources, LLC, you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
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SOURCE Bronstein, Gewirtz & Grossman, LLC
