NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/nuverra/) 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 purchasers of Nuverra Environmental Soultions, Inc. (“Nuverra” ) (NYSE:NES) common stock during the period between March 12, 2013 and August 23, 2013 (the “Class Period”).
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 email@example.com. 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/nuverra/. 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 Nuverra and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Nuverra provides full-cycle environmental cleanup services to customers in energy and industrial end-markets in the United States. It focuses on the delivery, collection, treatment, recycling, and disposal of restricted solids, water, waste water, used motor oil, spent antifreeze, waste fluids, and hydrocarbons through its two operating segments: Shale Solutions and Industrial Solutions.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects. As a result of defendants’ false statements, Nuverra shares traded at artificially inflated prices during the Class Period.
On July 30, 2013, the Company issued a press release announcing its “preliminary” second quarter 2013 financial results for the quarter ended June 30, 2013. Rather than the EBITDA of $46.7 million on revenues of $186.4 million that Nuverra had led the investment community to expect, Nuverra stated EBITDA would only be in the range of $32.8 to $33.6 million on $165.5 million in revenues. According to Nuverra: (i) weakness in the used oil market drew down revenues and profits in the Company’s Industrial Solutions segment; (ii) snow and rain hampered performance in the Company’s Shale Solutions segment; (iii) the Company was experiencing unspecified operational issues in its Eagle Ford area; and (iv) heavy demand in its Marcellus and Utica shale areas forced the Company to hire subcontractors, which lowered overall margins. On this news, the price of Nuverra common stock, which had traded as high as $4.42 per share in intraday trading during the Class Period, fell more than 30% to close at $3.04 per share on July 30, 2013.
Then on August 8, 2013, Nuverra announced its actual second quarter 2013 earnings results, disclosing an adjusted earnings per share loss of $0.05 per share, rather than the loss of $0.03 per share Nuverra had led the investment community to expect. Finally, on August 23, 2013, after the close of trading, stock blog Seeking Alpha.com published a research report that disclosed, among other things, specifics concerning the Power Fuels acquisition and discussed how that acquisition was weighing the Company’s financial performance down. On this news, the price of Nuverra common stock declined another 11.76%, closing at $2.40 per share on August 26, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of Nuverra common stock during the Class Period (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. Please visit http://www.rgrdlaw.com for more information.