SemGroup Hit With Shareholder Suit Over Hedging

Law360, New York (July 25, 2008, 12:00 AM EDT) -- Less than a month after filing for Chapter 11 bankruptcy protection, energy company SemGroup Energy Partners LP has been hit with a proposed class action claiming the company failed to disclose the risky trading strategy that eventually contributed to its downfall.

In a case filed on July 25 in the U.S. District Court for the Southern District of New York, shareholders allege that SemGroup misrepresented the strength of its parent company and failed to disclose its “risky hedging strategy,” according to Wolf Popper LLP, the law...
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