Robbins Umeda LLP Announces the Filing of a Securities Fraud Class Action Lawsuit Against Hi-Crush Partners LP.
Robbins Umeda LLP announces that a complaint has been filed in the U.S. District Court for the Southern District of New York on behalf of investors of Hi-Crush Partners LP (NYSE: HCLP) (“Hi-Crush” or the “Company”). The complaint alleges violations of the Securities Act of 1933 against the Company and certain of its officers and directors concerning Hi-Crush’s August 16, 2012 initial public stock offering (“IPO”).
Hi-Crush operates as a producer of monocrystalline sand, a mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The complaint alleges that, on August 16, 2012, the Company completed its IPO through the sale of 12,937,500 common units at a price of $17 per unit, receiving, approximately $220 million in gross proceeds. Specifically, the complaint alleges that statements contained in the Company’s July 6, 2012, Form S-1 Registration Statement contained materially false and misleading statements to investors about one of the Company’s largest customer, Baker Hughes Incorporated. Hi-Crush made repeated references to the strength of its relationship with Baker Hughes, and assured investors that the relationship was a stable source of long-term cash flow. Hi-Crush neglected to inform investors that, prior to its issuance, Baker Hughes had sought to change the terms of, or cancel, its supply contract with Hi-Crush.
Then, on November 13, 2012, Hi-Crush announced that Baker Hughes was unilaterally terminating its supply contract with Hi-Crush. On this news, the Company’s share price fell 26%, from $20.35 per share on November 12, 2012 to close at $15.00 on November 13, 2012.
If you purchased or otherwise acquired Hi-Crush stock during the Class Period and wish to serve as lead plaintiff, you must act no later than January 22, 2013. To discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.