Camber Energy Escapes Proposed Class Action Over Diluted Shares

Camber Energy Inc. beat a lawsuit alleging it misled investors about its share count while an investment fund significantly diluted the oil and gas company’s shares.

The proposed class action was filed in 2021, seeking to recover money investors lost when a report by a short seller knocked Houston-based Camber’s stock price down by over 70%. The report, from Kerrisdale Capital, said the market was “badly mistaken” about the company’s share count.

Judge Charles Eskridge in the US District Court for the Southern District of Texas said Camber disclosed in securities filings “all that it was required to” and gave ...