SAN FRANCISCO--(Lieff Cabraser Heimann & Bernstein, LLP announces that class action lawsuits have been brought on behalf of all persons who purchased the common units of Hi-Crush Partners LP (“Hi-Crush” or the “Company”) (NYSE: HCLP) pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with its initial public offering on or about August 16, 2012 (the “IPO”).)--The law firm of
If you purchased or otherwise acquired Hi-Crush common units pursuant and/or traceable to the Registration Statement and Prospectus, you may move the Court for appointment as lead plaintiff by no later than January 22, 2013. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Hi-Crush investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll-free at 1 (800) 541-7358.
Background on the Hi-Crush Securities Class Litigation
The actions are brought against Hi-Crush, certain of its officers and directors, and the underwriters of the IPO for violations of the Securities Act of 1933. Hi-Crush, based in Houston, Texas, operates as a producer of monocrystalline sand, a mineral used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells.
The actions allege that the Registration Statement issued in connection with the IPO was materially false and misleading. Specifically, the Registration Statement and Prospectus touted certain lucrative long-term contracts with large customers, including Baker Hughes Incorporated (“Baker Hughes”). It was not until after the IPO, however, that investors began to learn of significant problems with the Baker Hughes contract.
On November 13, 2012, the Company issued a press release announcing that Baker Hughes had unilaterally repudiated the supply contract with Hi-Crush on September 19, 2012 and claimed that Hi-Crush had breached the contract. Following this disclosure, the price of Hi-Crush common units fell $5.35 per unit to close at $15.00, significantly below the IPO price of $17 per common unit.
The actions allege that the Registration Statement and Prospectus failed to disclose the following material adverse facts: (a) in February 2012, after executing the original supply contract with Hi-Crush, 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.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last ten consecutive years.
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