Africa-Press – Liberia. shares in ReconAfrica. They claim the Canadian oil giant needs to pay damages as it has been untruthful about the nature of its oil and gas drilling activities in the Kavango Region, stating that the company risks damaging the fragile Kavango basin.
Rosen Law Firm further claimed that ReconAfrica has committed various violations of federal securities laws and has given investors who would wish to serve as lead plaintiff of the ReconAfrica class action to bring forth their complaints no later than 27 December 2021.
The class action lawsuit alleges that, throughout the class period, ReconAfrica made false and misleading statements and failed to disclose its plan for using unconventional means for energy extraction (including fracking) in the fragile Kavango area.
Hydraulic fracturing, or fracking, is an unconventional type of gas extraction that has come under attack internationally as it has been proven to poison groundwater, pollute surface water, impair wild landscapes, and threaten wildlife.
In addition, fracking has been linked to a range of negative health complications, including an increased risk of birth defects, certain cancers, asthma and other respiratory problems (potentially from decreased air quality), skin and eye irritation, damage to the nervous system and endocrine disruption.
Rosen Law Firm has further claimed that ReconAfrica would begin unlicensed drilling tests; that ReconAfrica would illegally use water for well-testing; and illegally store used water in unlined pools.
It further claimed that ReconAfrica would skirt Namibian law and hire an inadequate and inappropriate consultant and as a result, ReconAfrica risked future well-drilling and water-related licenses in Namibia and Botswana.
In addition, ReconAfrica has been accused of not reaching out adequately to local communities in the Kavango Region, which will be affected by the project as no information was given in local languages.
The law firm further claimed that ReconAfrica’s interests are in the Owambo Basin, not the so-called Kavango Basin and that ReconAfrica has continuously engaged in stock pumping; and as a result of the foregoing, defendants’ public statements were materially false and/or misleading at all relevant times.
In response, ReconAfrica said that it has not been served with the complaint as of yet and that when the time comes, the company will undertake vigorous action to defend itself against the claims.
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