The following statement is being issued by Federman & Sherwood, The Rosen Law Firm, P.A., and John E. Barush, P.C. regarding the Quest Securities Class Action and Derivative Litigation.
UNITED STATES DISTRICT COURT WESTERN DISTRICT OF OKLAHOMA
SUMMARY NOTICE OF PENDENCY AND PROPOSED SETTLEMENT
OF CLASS ACTIONS AND DERIVATIVE LAWSUIT
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This Notice relates to the following actions (the "Quest Actions"):
-- Michael Friedman, individually and on behalf of all others similarly
situated vs. Quest Energy Partners, LP; Quest Energy GP, LLC; Quest
Resource Corporation; Jerry Cash; David E. Grose; David C. Lawler;
Gary Pittman; Mark Stansberry; Murrell, Hall, McIntosh & Co., PLLP;
and Eide Bailly LLP, Case No. 08-CV-936-M
-- James Jents, individually and on behalf of all others similarly
situated vs. Quest Resource Corporation; Jerry Cash; David E. Grose;
and John Garrison, Case No. 08-CV- 968-M
-- J. Steven Emerson; Emerson Partners; J. Steven Emerson Roth IRA; J.
Steven Emerson IRA RO II; and Emerson Family Foundation vs. Quest
Resource Corporation Inc.; Quest Energy Partners LP; Jerry Cash; David
E. Grose; and John Garrison, Case No. 5:09-cv-1226M
-- Bristol Capital Advisors and Bristol Investment Fund, LTD vs. Quest
Resource Corporation, Inc.; Jerry Cash; David E. Grose; and John
Garrison, Case No. CIV-09-932
-- James Stephens, derivatively on behalf of Nominal Defendant Quest
Resource Corporation, Inc. vs. William H. Damon, III; Jerry Cash;
David Lawler; David E. Grose; Jaime B. Kite, Jr.; John C. Garrison;
and Jon H. Rateau and Quest Resource Corporation, Inc., Case No.
CIV-08-1025
TO: ALL PERSONS WHO PURCHASED COMMON UNITS OF QUEST ENERGY PARTNERS, LP (NOW NAMED "POSTROCK MIDCONTINENT PRODUCTION, LLC") (HEREIN REFERRED TO AS "QUEST ENERGY") DURING THE PERIOD FROM NOVEMBER 7, 2007 THROUGH AUGUST 24, 2008, INCLUSIVE, ("QUEST ENERGY CLASS"), AND/OR PURCHASED COMMON STOCK OF QUEST RESOURCE CORPORATION (NOW NAMED "POSTROCK ENERGY SERVICES CORPORATION") (HEREIN REFERRED TO AS "QUEST RESOURCE") DURING THE PERIOD FROM MAY 2, 2005 THROUGH AUGUST 25, 2008, INCLUSIVE, ("QUEST RESOURCE CLASS"), OR ARE SHAREHOLDERS OF POSTROCK ENERGY CORPORATION ("POSTROCK")
YOU ARE HEREBY NOTIFIED, pursuant to an Order of the United States District Court for the Western District of Oklahoma, that a hearing will be held on November 29, 2010 at 10:00 a.m. in room 301 before the Honorable Vicki Miles-LaGrange, United States District Judge for the Western District of Oklahoma, 200 NW 4th Street, Oklahoma City, OK 73102 for the purpose of determining: (1) whether the proposed Settlement consisting of the sum of $10,100,000 (of which a total of $1,010,000 will be paid to plaintiffs in both law suits known as Bristol Capital Advisors v. Quest Resource Corporation, Inc., et al., Case No. CIV-09-932, (the "Bristol Capital Litigation"), and Emerson v. Quest Resource Corp., Case No. 5:09-cv-1226M, (the "Emerson Litigation")) should be approved by the Court as fair, reasonable, and adequate; (2) whether the corporate governance reforms approved by the PostRock Energy Corporation board of directors in consideration for a full release and dismissal with prejudice of the derivative lawsuit known as Stephens v. Damon, et al., Case No. 08-CV-1025-M, (the "Stephens Litigation") in addition to other pending derivative lawsuits is fair, reasonable and adequate; (3) whether the proposed plan to distribute the settlement proceeds is fair, reasonable and adequate; (4) whether the application for an award of attorneys' fees of one third of the Settlement amount and reimbursement of expenses of not more than $350,000 should be approved; and (5) whether the class actions made on behalf of the Quest Energy Class and the Quest Resource Class, in addition to the Bristol Capital Litigation, the Emerson Litigation, and the Stephens Litigation, should be dismissed with prejudice.
If you purchased common units of Quest Energy during the class period from November 7, 2007 through August 24, 2008, inclusive, if you purchased common stock of Quest Resource during the class period from May 2, 2005 through and including August 25, 2008, and/or are a current PostRock shareholder, your rights may be affected by this Settlement. If you are a member of the Quest Energy Class, the Quest Resource Class and/or are a current PostRock shareholder and have not received a detailed Notice of Pendency and Proposed Settlement of Class Actions and Derivative lawsuit and a copy of the Proof of Claim and Release, you may obtain copies by writing to Quest Securities Litigation, c/o The Garden City Group, Inc., Claims Administrator, P.O. Box 9657, Dublin, OH 43017, or going to its website, www.gardencitygroup.com.
If you are a member of the Quest Energy Class or Quest Resource Class, in order to share in the distribution of the Net Settlement Fund, you must submit a Proof of Claim and Release no later than November 13, 2010, establishing that you are entitled to recovery. You will be bound by any judgment rendered whether or not you make a claim. If you desire to be excluded from the Quest Energy Class or the Quest Resource Class you must mail your exclusion request, post-marked no later than November 15, 2010, to The Garden City Group, Inc.
Any objection to the Settlement, Plan of Allocation, or the Request for Award of Attorneys' Fees and Reimbursement of Expenses must be mailed or delivered such that it is received by each of the following no later than November 15, 2010:
Clerk of the Court
U.S. District Court
Western District of Oklahoma
200 NW 4th Street
Room 301
Oklahoma City, OK 73102
Phillip Kim, Esq.
THE ROSEN LAW FIRM, P.A.
350 Fifth Avenue, Suite 5508
New York, NY 10118
Tel: (212) 686-1060
Fax: (212) 202-3827
Class Counsel
William B. Federman, Esq.
Federman & Sherwood
10205 North Pennsylvania Avenue
Oklahoma City, OK 73120
Class Counsel
John E. Barbush, Esq.
John E. Barbush, P.C.
120 N. Robinson
Suite 2700
Oklahoma City, OK 73102
Derivative Counsel
Michael J. Biles, Esq.
Greenberg Traurig LLP
300 West 6th Street, Suite 2050
Austin, TX 78701
Counsel for Defendants
Robert S. Harrell
Fulbright & Jaworski L.L.P.
1301 McKinney, Suite 5100
Houston, TX 77010-3095
Counsel for Defendants
If you have any questions about the Settlement, you may call or write to Class Counsel:
Phillip Kim, Esq.
THE ROSEN LAW FIRM, P.A.
350 Fifth Avenue, Suite 5508
New York, NY 10118
(212) 686-1060
William B. Federman, Esq.
Federman & Sherwood
10205 North Pennsylvania Avenue
Oklahoma City, OK 73120
(405) 235-1560
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