Reconnaissance Energy $9.4 Million Securities Settlement

If you purchased or acquired publicly traded common stock of Reconnaissance Energy Africa Ltd. on the OTC market between February 28, 2019, and September 7, 2021, you may be eligible to claim compensation from a class action settlement.

Reconnaissance Energy Africa Ltd. has agreed to pay $9,425,000 to settle a class action lawsuit for alleged false and misleading statements regarding their business operations in Namibia.

Who can file a claim?

• Individuals and entities that purchased or acquired ReconAfrica stock on the U.S. OTC market under the ticker symbols "RECAF," "LGDOD," and/or "LGDOF" between February 28, 2019, and September 7, 2021.
• Those who were damaged by the alleged false statements made by ReconAfrica.

How much can class members get?

The estimated average recovery per eligible share is approximately $0.26, but this amount may vary based on the number of valid claims submitted and the individual circumstances of each claimant.

The potential award for class members will be distributed from the net settlement fund, which is the settlement amount minus any fees and expenses approved by the court.

• Early Purchasers: Those who purchased shares early in the class period may receive a higher compensation due to the longer duration of holding inflated shares.
• Later Purchasers: Later purchasers may receive less due to the shorter holding period.

The distribution will be calculated on a pro rata basis, meaning each claimant's award will be proportional to their recognized loss compared to the total recognized losses of all claimants.

Is proof required to submit a claim?

Yes, claimants need to provide proof of their transactions in ReconAfrica stock during the class period. Claimants must submit documentation such as brokerage confirmation slips or monthly account statements that detail their purchases, sales, and holdings of the stock.

How to claim an award

To claim an award, class members must complete and submit a claim form. This can be done filing a claim online or by mailing the form to the claims administrator.

For mail submissions, send the completed form to:

In Re Reconnaissance Energy Africa Ltd. Securities Litigation

c/o Epiq

P.O. Box 6929

Portland, OR 97228-6929

Payment methods

• Check
• Direct deposit

Settlement Fund Breakdown

The settlement fund of $9,425,000 will cover:

• Payments to eligible class members based on their recognized losses.
• Attorneys' fees and litigation expenses, which may not exceed 33⅓% of the settlement fund.
• Costs associated with administering the settlement and notifying class members.

Important dates

• Deadline to File a Claim: January 9, 2025
• Fairness Hearing: December 19, 2024

When is the ReconAfrica Settlement payout date?

Once the settlement receives final court approval, the claims administrator will process all submitted claims. Eligible claimants will receive their compensation after the claims processing is complete, which may take several months following the final approval date.

Understanding the ReconAfrica class action settlement

The class action lawsuit was filed against ReconAfrica for allegedly making false and misleading statements about their business operations in Namibia. These statements reportedly inflated the company's stock price, causing financial harm to investors when the truth was revealed.