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Investors who purchased or otherwise acquired Anadarko Petroleum Corp. common stock between Feb. 20, 2015, and May 2, 2017, may be eligible to claim a cash payment from a class action settlement.
Anadarko Petroleum Corp., Robert G. Gwin, R.A. Walker, Robert P. Daniels and Ernest A. Leyendecker III agreed to pay $114.5 million to settle a securities class action lawsuit alleging they misled investors about the commercial viability of the Shenandoah oil field project in the Gulf of Mexico.
Who can file a claim?
The settlement includes all persons and entities who purchased or otherwise acquired Anadarko Petroleum Corp. common stock between Feb. 20, 2015, and May 2, 2017, inclusive, and whose purchase allegedly harmed them.
Additional details
- Both individuals and entities can be class members.
- The actual beneficial owner or a legal representative must submit the claim.
- Joint owners must each sign the claim form.
- Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.
- Each separate legal entity must submit a separate claim.
How much can class members get?
The total settlement fund is $114,500,000. The amount each class member will receive depends on several factors:
- The number of valid claims submitted
- The number of shares purchased or acquired during the class period
- The timing of each purchase and sale
- The total recognized claims of all eligible class members
The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:
- The estimated average recovery is about $0.41 per share before deductions for taxes, notice and administration costs, and attorneys' fees and expenses. Estimated attorneys' fees and expenses are about $0.14 per share.
- Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
- The settlement administrator will calculate a recognized loss for each share class members bought during the class period using the court-approved plan of allocation:
- Alleged artificial inflation is zero for shares bought on Feb. 20, 2015; $1.75 per share for shares bought from Feb. 21, 2015, through July 26, 2016; and $1.92 per share for shares bought from July 27, 2016, through May 2, 2017 (Table 1 on Page 10 of the settlement notice).
- The lookback average is the average closing price from May 3, 2017, through the sale date (Table 2 on Page 10 of the settlement notice).
- For shares sold from Feb. 20, 2015, through May 2, 2017, the recognized loss is zero.
- For shares sold from May 3, 2017, through July 31, 2017, the recognized loss is the least of the purchase-date inflation, the purchase price minus the sale price or the purchase price minus the lookback average.
- For shares held as of the close of trading on July 31, 2017, the recognized loss is the lesser of the purchase-date inflation or the purchase price minus $47.88, the average closing price during the 90-day lookback period.
- Claimants with an overall market gain on their class period Anadarko trades will have a recognized claim of zero. Recognized claims cannot exceed a claimant's actual market loss.
- The settlement administrator will set any recognized loss that calculates to a negative number to zero.
- If total recognized claims exceed the fund, the settlement administrator will reduce payments on a pro rata basis.
- Class members whose payment would be less than $10 will not receive a payout.
How to claim an Anadarko securities class action settlement payment
Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Jan. 21, 2027.
Settlement administrator's mailing address: Anadarko Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301135, Los Angeles, CA 90030-1135
Proof or documentation required to submit a claim
All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide holdings and transaction information, including:
- Number of shares held as of the close of trading on Feb. 19, 2015
- Trade dates for purchases and sales from Feb. 20, 2015, through July 31, 2017
- Number of shares purchased, acquired or sold
- Total purchase, sale or acquisition price
- Number of shares held as of the close of trading on May 2, 2017, and July 31, 2017
Class members must also provide documentation to support their holdings and transactions. Acceptable proof includes:
- Broker confirmations
- Other documentation of the transactions
Payout options
- Physical check
- Electronic payment
$114.5 million settlement fund
The $114,500,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $34,350,000
- Attorneys' expenses: Up to $3,500,000
- Service awards to plaintiffs: Up to $57,500 total
- Payments to eligible class members: Remainder of the fund
Important dates
- Opt-out deadline: Dec. 24, 2026
- Fairness hearing: Jan. 14, 2027
- Deadline to file a claim: Jan. 21, 2027
When is the Anadarko securities class action settlement payout date?
The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Anadarko and four individual defendants overstated the viability of the Shenandoah oil field project and concealed negative information about it from investors. The plaintiffs claimed these statements artificially inflated Anadarko's stock price and caused investor losses when the company announced it was suspending appraisal of the project.
The defendants denied all allegations of wrongdoing but agreed to settle to eliminate the uncertainty, risk, costs and burdens of further litigation.
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