Robbins Umeda LLP Announces an Investigation of Carbo Ceramics, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Carbo Ceramics, Inc. (NYSE: CRR). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether officials at Carbo Ceramics breached their fiduciary duties to shareholders and maintained inadequate controls to the detriment of the company and investors. The firm is investigating allegations that members of the board of directors issued improper statements concealing the fact that: (1) the company was experiencing a dramatic decline in proppant sales in the Haynesville region; and that (2) the company was being negatively impacted by logistical problems such that it was unable to shift resources to liquid plays where drilling activity was increasing.
Carbo Ceramics investors were first alerted to the true condition of the company’s business on January 26, 2012, when Carbo Ceramics announced that the company had experienced a 70% decline in proppant sales in the Haynesville region and that it had been unable to shift resources due to logistical issues. On this news, the value of the company’s stock declined from $130.72 per share to $103.76 per share. In addition, since these facts have emerged, Carbo Ceramics has increasingly become the focus of costly public and legal scrutiny.
Robbins Umeda LLP highlights that Carbo Ceramics shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.