A painful sell-off of Atlas Energy Group yesterday saw shares fall more than 42%. The sell-off comes a day after the stock rallied more than 19% on news that hedge fund manager Leon Cooperman had purchased 1,277,162 shares. The purchase was disclosed in a Form 4 Filing with the SEC. The stock hit a quarterly high during Tuesday’s trading session.
The Securities and Exchange Commission is preparing for its case against Leon Cooperman, the leader of Omega Advisors. The hedge fund manager is facing insider trading charges for information he acquired on Atlas Partners.
The SEC alleges that Cooperman accessed illegal and non-public information tied to a firm called Atlas Pipeline Partners. The firm would later be part of a merger between Atlas Energy and the midstream oil and gas subsidiary to form Atlas Energy Group.
The SEC claims that Cooperman used information about Atlas Pipeline’s sale of a natural gas plan in Oklahoma to purchase the stock. Once the information about the sale went public, Cooperman’s stock increased by one-third in value, according to the complaint. The SEC says that Cooperman later attempted to cover up his trade and lied about the trade and access to non-public material after he received a subpoena.
For more information on The White Law Group’s investigation of Atlas Partners, see: Atlas Resource Partners LP Files for Bankruptcy Protection.
If you invested in an Atlas Resource offering and would like to discuss your litigation options, please call The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors in FINRA arbitration claims throughout the country. Visit our homepage to learn more about the firm.