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11/25/2019 - 12/21/2023


Complaint 02/05/24



On Dec. 21, 2023, the SEC announced that it had resolved fraud charges brought against Brooge Energy Limited, and its former CEO, Nicolaas Lammert Paardenkooper, and Lina Saheb, who served as Chief Strategy Officer and Interim CEO.

Brooge Energy consented to a settlement with the SEC, acknowledging violations of numerous federal securities law provisions, including antifraud and reporting requirements. The company was fined $5 million. Paardenkooper and Saheb also settled, agreeing to pay $100,000 each in civil penalties and accepting permanent bans from serving as officers or directors in any public companies.

But a recently filed securities class action suit seeks to recover additional monetary compensation for Brooge investors resulting the alleged fraud. Consistent with the SEC’s allegations, the complaint contends that Brooge inflated a substantial portion of its revenues – between 30 and 80 percent – in its filings with the SEC. The complaint alleges that the misreported revenues were critical to the company going public via a special purpose acquisition transaction.

The suit alleges that Defendants perpetrated the fraud by fabricating invoices designed to significantly boost the revenue figures from Brooge Energy’s oil operations in Fujairah, UAE. Over a three-year period, these false invoices reportedly overstated revenues by over $70 million. The complaint alleges that Paardenkooper and Saheb were knowingly involved in this fraudulent activity or deliberately reckless as to the accuracy of the company’s financial disclosures.

When the truth was revealed through the SEC’s Dec. 21, 2023 announcement, Brooge’s shares declined nearly 16%, injuring investors.


What is the BROG securities class-action case about?

The complaint alleges Brooge made misleading statements and failed to disclose that it: (1) overstated revenues because it never received any revenues from related party A1 Brooge International Advisory LLC (“BIA”), as well as from another fake customer (“Customer A”); (2) engaged in a complex pattern of payments with BIA to create the illusion of revenues from BIA and another customer who had no knowledge of the fraud; (3) intentionally lied to its auditors and the SEC about its fraudulent activities; and (4) lacked internal controls.


I worked at BROG. What should I do?

If you were an employee of BROG during the period relevant to the class-action case, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or BROG@hbsslaw.com.

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions


What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.


Am I affected? What do I need to do to participate?

If you were an investor in BROG during the relevant period specified in the class-action lawsuit, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any BROG investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This class-action only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.

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