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BROG.US
id: 1085

Brooge Energy (BROG) Fraud Charges Brought by SEC Case

C.D. California
Court
2:24-cv-00959
Case number
25 Nov 2019
Class period Start
21 Dec 2023
Class period End
05 Apr 2024
Lead Plaintiff motion deadline
  • $BROG stockholder filed a claim vs. Brooge Energy over misrepresenting financial results.
  • The news from the SEC about fraud charges caused $BROG to fall 15%, losing $67M+ in shareholder value.
On December 22, 2023, SEC announced fraud charges against Brooge, the Company’s former CEO, and its former Chief Strategy Officer and Interim CEO. SEC order stated that, before and after going public, Brooge misstated up to 80 percent of its revenues from 2018 through early 2021 in SEC filings related to the offer and sale of up to $500 million of securities.
  • Further, the order found that Brooge created false invoices to inflating revenues by over $70 million over three years, and that the charged officers knew of the fraud.
  • The SEC order also found that Brooge provided these false invoices to its auditors to conceal the inflated revenue.
  • In addition, according to the order, Brooge agreed during the SEC’s investigation not to issue the $500 million in securities.
On this news, $BROG fell 15.66% and lost over $67 million of its market capitalization, seriously damaging shareholders.

Based on these events, $BROG stockholder filed a claim against Brooge Energy and its leaders, accusing them of the following:
  • Brooge Energy overstated its revenues by fabricating transactions with non-existent customers.
  • Brooge lied to auditors and regulators about its fraudulent activities, lacking internal controls.
Considering all the information, investors might have grounds to suspect Brooge of using deceptive practices to fabricate revenue.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Fraud
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
22 December 2023
Filing date
05 February 2024
Lead Plaintiff Deadline
05 April 2024
Collecting participants…

Brooge Holdings Ltd

Brooge Energy Limited, through its subsidiaries, provides oil storage and related services at the Port of Fujairah in the United Arab Emirates. It operates phase I and phase II facilities comprisin...

    Ticker
    BROG.US
    ISIN
    KYG1611B1077
    CIK
    1774983
    Sector
    Energy
    Industry
    Oil & Gas Midstream
    Country
    USA
    Address
    Opus Tower A, 1002, Dubai, United Arab Emirates