Levi & Korsinsky Announces ZN Lawsuit – Zion Class Action Filed
Levi & Korsinsky, LLP
September 4, 2018
Peak v. Zion Oil & Gas Inc. et al 3:18-cv-2067 — On August 9, 2018, investors sued Zion Oil & Gas, Inc. (Zion, ZN, or the Company) in United States District Court, Northern District of Texas, Dallas Division. Plaintiffs in the ZN class action allege that they acquired Zion stock at artificially inflated prices between March 12, 2018 and July 10, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the ZN Lawsuit, please contact us today!
Summary of the Allegations
According to its website, Zion (NASDAQ:ZN) is a Delaware corporation founded in 2000 that explores for oil and gas onshore in Israel. As such, it “currently holds approximately 99,000 acres of land in Israel, all on the Megiddo-Jezreel License.”
Although it has been in business for less than 20 years, Zion’s backstory dates to 1983, when its founder and chairman became “inspired and dedicated to finding gas and oil in Israel” during a visit. His interest in doing so prompted him to initiate the process that resulted in the creation of the so-called “Joseph Project.” and he started the process that led to the Joseph Project. “
“During the next 17 years he made numerous trips to Israel, hired oil and gas consultants in Israel and Texas, met with Israeli government officials, made direct investments with local exploration companies, and assisted Israeli exploration companies in raising money for oil and gas exploration in Israel,” Zion’s website states.
Although the Company’s mission is “biblically inspired,” Zion says, “The actions taken by the Zion management as it actively explores for oil and gas in Israel, are based on modern science and good business practice.”
Summary of Facts
Zion and two of its senior officers (the “Individual Defendants”) are now accused of deceiving investors by lying or withholding critical information about the Company’s business operations during the Class Period.
Specifically, they are accused of making false or misleading statements and/or failing to disclose information about Zion’s status as the potential or actual subject of an SEC investigation. By knowingly or recklessly doing so, they allegedly caused Zion stock to trade at artificially inflated prices during the time in question.
The truth came out on July 11, 2018, when the Company filed a current report with the SEC. In it, Zion disclosed that on June l21, 2018, it had received “a subpoena to produce documents from the Fort Worth office of the Securities and Exchange Commission [“SEC”] informing Zion of the existence of a non-public, fact-finding inquiry into the Company.” Zion also said that its “response to the subpoena will necessarily entail significant costs and management’s attention.”
A closer look…
As alleged in the August 9 complaint, Zion and/or the Individual Defendants repeatedly denied during the Class Period that the Company was a potential or actual subject of an SEC investigation.
For example, in response to a March 26, 2018 Twitter post inferring that the Company was the subject of an SEC investigation, the Company stated the following in a Tweet the next day: “There is no investigation. Merely indicators of a routine FINRA questionnaire that’s standard after a steep rise of our stock recently.”
Then, following a report that the SEC was investigating the Company, Zion issued the following statement on Twitter on May 30, 2018: “There is no SEC investigation into Zion Oil & Gas, Inc.” In the same Tweet, Zion advised investors to “just ignore such distortions.”
Finally, in a second Tweet that day, the Company told investors to “Arm yourself with good information and how to spot false rumors,” and included a link to an article on Investopedia called “Short and Distort: Bear Market Stock Manipulation.”
Impact of the Alleged Fraud on Zion’s Stock Price and Market Capitalization
|Closing stock price prior to disclosures:
|Closing stock price the trading day after disclosures:
|One day stock price decrease (percentage) as a result of disclosures:
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is October 9, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Zion common stock using court approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.
For additional information about this case or our institutional services, please contact us.