Stone Energy Manipulated Oil Reserves: Class Actions

Law360, New York (December 5, 2005, 12:00 AM EST) -- Oil and gas firm Stone Energy Corp. has been sued by investors for allegedly using fraudulent accounting practices to inflate the value of its “proven” oil reserves.

The class actions follow in internal review that revealed inadequate guidance on regulatory standards and an aggressive “tone from the top” that pressured the company’s technical staff.

The situation began in early October, when Louisiana-based Stone Energy announced it would write off more than $160 million, or 20%, of the value of its oil reserves. The following month, the...
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