News & Media

Settlement Information for In re Cobalt International Energy, Inc. Securities Litigation

December 5, 2018

The Firm and its co-counsel on behalf of Plaintiffs representing a class of investors recently entered into three settlements (the “Settlements”) that resolve a federal securities class action (the “Action”) on behalf of investors who purchased certain Cobalt International Energy, Inc. (“Cobalt”) securities from March 1, 2011 through November 3, 2014, inclusive (the “Class Period”).

If you purchased the following securities of Cobalt during the Class Period, your rights will be affected and you may be eligible for a payment from the Settlements: Cobalt common stock, Cobalt 2.625% Convertible Senior Notes due 2019, and/or Cobalt 3.125% Convertible Senior Notes due 2024 (collectively, “Cobalt Securities”).

The Settlements, if approved, will resolve all claims in the Action, including:

(A)  The private equity sponsors who invested in Cobalt prior to its initial public offering and sold certain Cobalt Securities during the Class Period, certain individuals designated to the Cobalt board of directors by the private equity sponsors, and a sponsor-affiliated underwriter of certain Cobalt Securities offerings during the class period for $146,850,000 in cash (the “Sponsor/GS&Co. Settlement”);

(B)  The other underwriters of Cobalt Securities offerings during the class period for $22,750,000 in cash (the “Underwriter Settlement”); and

(C)  Cobalt and certain of its former officers and directors for $220,000,000, that is payable exclusively from the proceeds of litigation to recover on liability insurance policies preserved through Cobalt’s plan in bankruptcy (the “Cobalt Settlement”). The projected recovery in the Cobalt Settlement is between $4,200,000 and $165,700,000.

The total recoveries from the proposed Sponsor/GS&Co., Underwriter and Cobalt Settlements should total between $173,800,000 and $335,300,000, if all of the Settlements are approved.

If you purchased the subject Cobalt Securities during the Class Period, in order to be potentially eligible to receive a payment under the proposed Settlements, you must submit a Claim Form postmarked no later than April 4, 2019You only need to submit one Claim Form, which cover all claims you may have in all three Settlements.

Please click these links to the Notice and Claim Form to fully understand your rights and options. You may also visit the Settlement website, www.CobaltSecuritiesLitigation.com, for more information about the Settlement.

Payments to eligible claimants will be made only if the Court approves on or more of the proposed Settlements and a plan of allocation, and only after any appeals are resolved, and after the completion of all claims processing. Please be patient, as this process will take some time to complete.

IMPORTANT DATES AND DEADLINES

 April 4, 2019
Claim Filing Deadline. Claim Forms must be postmarked no later than April 4, 2019 to be eligible for a payment from the Settlements.
 

January 23, 2019
 

Exclusion Deadline. To exclude yourself from the Settlements, you must submit a written request for exclusion so that it is received no later than January 23, 2019, in accordance with the instructions in the Notice.

 

January 23, 2019
 

Objection Deadline. Any objections to any of the proposed Settlements, the proposed Plan of Allocation included in the Notice, and/or the request for attorneys’ fees and reimbursement of expenses, must be submitted to the Court no later than January 23, 2019, in accordance with the instructions in the Notice.

 

February 13, 2019
at 10:00 a.m.
 

Settlement Hearing. The Settlement Hearing will be held on February 13, 2019 at 10:00 a.m., before the Honorable Nancy F. Atlas at the United States District Court for the Southern District of Texas, United States Courthouse, 515 Rusk Street, Houston, TX 77002. The Settlement Hearing will be held by the Court to consider, among other things, whether the proposed Settlements are fair, reasonable and adequate and should be approved; whether the proposed Plan of Allocation is fair and reasonable and should be approved; and whether Lead Counsel’s motion for attorneys’ fees and expenses should be approved.

 

If you wish to discuss this action or have any questions concerning your rights or interests, please contact Joshua Porter or Jonathan Beemer at (212) 894-7200 or [email protected] / [email protected]