If you purchased the common units of Quest Energy Partners, LP (now named “PostRock MidContinent Production, LLC”) (“Quest Energy”) during the period from November 7, 2007 through and including August 24, 2008 (“Quest Energy Class”), or if you purchased the common stock of Quest Resource Corporation (now named “PostRock Energy Services Corporation”) (“Quest Resource”) during the period from May 2, 2005 through and including August 25, 2008 (“Quest Resource Class”), you could get a payment from a class actions settlement (the “Settlement”). If you are a common shareholder of PostRock Energy Corporation (“PostRock”), you could benefit from the corporate governance reforms that will be implemented by PostRock in accord with the Settlement.
A class action settlement has been reached in several securities fraud class action lawsuits and a derivative action against various defendants, including Quest Energy Partners, LP; Quest Energy GP, LLC; Quest Resource Corporation (collectively “Quest Energy” or “Quest”) and certain individuals (collectively “Defendants”) pending in the United States District Court for the Western District of Oklahoma alleging, among other things, violation of federal securities fraud laws or state law breach of fiduciary duty claims, according to the Quest securities fraud class action and derivative action settlement notice.
The Quest securities fraud class action and derivative action settlement involves the following lawsuits:
- Michael Friedman, individually and on behalf of all others similarly situated vs. Quest Energy Partners, LP; Quest Energy GP, LLC; Quest Resource Corporation; Jerry Cash; David E. Grose; David C. Lawler; Gary Pittman; Mark Stansberry; Murrell, Hall, McIntosh & Co., PLLP; and Eide Bailly LLP, Case No. 08-CV-936-M
- James Jents, individually and on behalf of all others similarly situated vs. Quest Resource Corporation; Jerry Cash; David E. Grose; and John Garrison, Case No. 08-CV- 968-M
- J. Steven Emerson; Emerson Partners;J. Steven Emerson Roth IRA; J. Steven Emerson IRA RO II; and Emerson Family Foundation vs. Quest Resource Corporation Inc.; Quest Energy Partners LP; Jerry Cash; David E. Grose; and John Garrison, Case No. 5:09-cv-1226M
- Bristol Capital Advisors and Bristol Investment Fund, LTD vs. Quest Resource Corporation, Inc.; Jerry Cash; David E. Grose; and John Garrison, Case No. CIV-09-932
- James Stephens, derivatively on behalf of Nominal Defendant Quest Resource Corporation, Inc. vs. William H. Damon, III; Jerry Cash; David Lawler; David E. Grose; Jaime B. Kite, Jr.; John C. Garrison; and Jon H. Rateau and Quest Resource Corporation, Inc., Case No. CIV-08-1025
The Quest securities fraud class action lawsuit complaints in the Friedman Class Action, the Jents Class Action, the Bristol Capital Litigation, and the Emerson Litigation reportedly allege that defendants in each of those actions violated the federal securities laws by issuing false and misleading statements and/or concealing material facts concerning certain unauthorized transfers of funds from subsidiaries of Quest Resource to entities controlled by Quest Resource’s former chief executive officer, Jerry D. Cash. The derivative action lawsuit complaint in the Stephens Litigation reportedly alleges that the defendants in that action are liable for breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets, and unjust enrichment.
Subject to Court approval, the Quest Energy settlement will create a settlement fund comprised of $10,100,000 paid by defendants (the “Settlement Fund” or “Settlement Amount”) to pay claims of (i) purchasers of Quest Energy common units, and (ii) purchasers of Quest Resource common stock (together “Class Period Purchasers,”), (iii) the plaintiffs J. Steven Emerson, Emerson Partners, J. Steven Emerson Roth IRA, J. Steven Emerson IRA RO II, Emerson Family Foundation (the “Emerson Plaintiffs”) who filed the lawsuit entitled Emerson v. Quest Resource Corp., Case No. 5:09-cv-1226M (the “Emerson Litigation”), and (iv) the plaintiffs Bristol Capital Advisors and Bristol Investment Fund, Ltd. (the “Bristol Capital Plaintiffs”) who filed a lawsuit entitled Bristol Capital Advisors v. Quest Resource Corporation, Inc., et al., Case No. CIV-09-932 (the “Bristol Capital Litigation”).
The reported deadline to request exclusion from the Quest Energy settlement (i.e., to opt out) or to file an objection to the settlement is November 15, 2010. The reported deadline to submit a settlement proof of claim form is November 13, 2010.
The Court is scheduled to hold a settlement Fairness Hearing on November 29, 2010, at 10:00 a.m., at the United States District Court for the Western District of Oklahoma, 200 NW 4th Street, Room 301, Oklahoma City, OK 73102 to consider, among other things, whether the Quest Energy settlement is fair, reasonable, and adequate and whether to approve the settlement.
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