Hi-Crush Partners LP
Lead Plaintiff Deadline: 01/21/13
Date filed: 11/21/12
Class period: August 16, 2012 to November 20, 2012
Court: Southern District of New York
Abraham, Fruchter & Twersky, LLP has filed a class action lawsuit 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 (“HCLP” or the “Company”) (NYSE: HCLP) in and/or following the Company’s initial public offering (“IPO”) completed on or about August 16, 2012. The complaint charges HCLP, certain of its officers and directors, and the underwriters of its IPO with violations of the federal securities laws.
Hi-Crush Partners, based in Houston, Texas, engages in the mining and processing of raw sands for use in hydraulic fracturing operations in oil and gas wells. On August 16, 2012, Hi-Crush Partners commenced an initial public offering (“IPO”) of 11,250,000 shares at a price of $17 per share for total proceeds of $191.25 million.
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 their obligation to purchase sand from Hi-Crush pursuant to a May 2012 contract. However, as the complaint alleges, 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.
On November 13, 2012, HCLP was forced to disclose that Baker Hughes had unilaterally repudiated that supply contract, stating HCLP was in breach. In a reaction to this news, shares of HCLP’s common stock fell $5 per share, or 25%, on extremely high trading volume of more than 3.3 million shares trading.
If you purchased the common stock of HCLP pursuant and/or traceable to the Registration Statement issued in connection with the IPO (the “Class”) and would like to serve as lead plaintiff in this action, you must move the Court no later than January 21, 2013. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
If you would like to discuss these claims or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, please contact an AF&T attorney. If you would like information on how to participate in this action, please fill out the form below.