Two SandRidge Energy Inc. shareholders have filed a securities fraud lawsuit against the company, accusing its top executives of overstating SandRidge's transformation to a high-margin oil producer.
Shareholders James Glitz and Rodger A. Thornberry accuse the company and its top executives of overstating the value of SandRidge's holdings in the Mississippian play in northern Oklahoma and southern Kansas.
They contend SandRidge officials — including CEO Tom Ward, President Matthew Grubb and Chief Financial Officer James D. Bennett — misstated the success of the company's conversion from natural gas to oil ahead of last month's earnings call, leading to inflated stock prices.
SandRidge's stock dipped 9 percent after the call, during which officials disclosed the proportion of company's oil-producing assets in the Mississippian, according to the lawsuit.
The lawsuit was filed as a class-action case on behalf of all SandRidge shareholders who bought into the Oklahoma City-based company between Feb. 24 and Nov. 8.
It was filed Wednesday in federal court in Oklahoma City.
A SandRidge spokesman declined to comment on the lawsuit Friday.
SandRidge also has been under fire recently from two of its largest shareholders, who are seeking a change in leadership to boost the company's value.