Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Hi-Crush Partners LP
NEW YORK--(BUSINESS WIRE)-- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/hicrush/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the common stock of Hi-Crush Partners LP ("Hi-Crush" or the "Company") (NYS: HCLP) in and/or following the Company's initial public offering completed on or about August 16, 2012 (the "IPO").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/hicrush/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Hi-Crush, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933. Hi-Crush is a publicly traded Delaware limited partnership that produces monocrystalline "frac" sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells.
The complaint alleges that the Registration Statement issued in connection with the Company's August 16, 2012 IPO was negligently prepared and, as a result, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation.
Specifically, the complaint alleges that the Registration Statement highlighted Baker Hughes Incorporated ("Baker Hughes") as one of Hi-Crush's two largest customers and emphasized that it was obligated to purchase sand from Hi-Crush pursuant to a May 2012 "take-or-pay contract" that "require[d]" Baker Hughes "to pay a specified price for a specified volume of frac sand each month." According to the complaint though, on November 13, 2012, Hi-Crush was forced to disclose that Baker Hughes had unilaterally repudiated that supply contract, stating Hi-Crush was in breach. On this disclosure, Hi-Crush's stock price fell $5 per share, or 25%, on extremely high trading volume of more than 3.3 million shares trading.
The complaint alleges that the Registration Statement issued in connection with the IPO was false and misleading and/or failed to disclose the following adverse facts: (a) after executing the original supply contract with Hi-Crush in October 2011, beginning in February 2012, Baker Hughes began expressing an unwillingness to comply with that contract; (b) six months prior to the IPO, Baker Hughes had demanded significant volume and other concessions resulting in the execution of an amended supply contract; (c) according to Baker Hughes, Hi-Crush had, or was, violating confidentiality provisions in the supply contract; and (d) as a result, Baker Hughes would repudiate all of its financial obligations under the supply contract, materially decreasing Hi-Crush's revenues and profits attributable to that important supply contract.
Plaintiff seeks to recover damages on behalf of all purchasers of Hi-Crush common stock pursuant and/or traceable to the Registration Statement issued in connection with the IPO (the "Class"). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
KEYWORDS: United States North America New York
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