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BROG.US
id: 1085
Brooge Energy (BROG) Fraud Charges Brought by SEC Case
C.D. California
Court2:24-cv-00959
Case number11/25/2019
Class period Start12/21/2023
Class period End04/05/2024
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
Case Consolidation
Alleged Offence
Misleading Statements,
Fraud,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
12/22/2023
Filing date
02/05/2024
Lead Plaintiff Deadline
04/05/2024