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Bankrupt Oil Co. Gives Preferred-Share Action The Slip

Law360, New York (December 20, 2016, 5:00 PM EST) -- A Manhattan federal judge dismissed a class action lawsuit against New Source Energy Partners LP and underwriters over the company's $40 million 2015 preferred-share offering Monday, finding that the bankrupt oil and gas portfolio's risk-disclosures were “precise” and “exhaustive” and did not run afoul of the securities laws.

The ruling by U.S. District Judge Kimba M. Wood gave investor-plaintiffs including Enrico Vaccaro leave to amend their claims, initially lodged in November 2015. But she held the company, which filed for bankruptcy in March, properly disclosed the existence...
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