LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Covia Holdings Corporation (“Covia” or the “Company”) f/k/a Fairmount Santrol Holdings Inc. (“Fairmount Santrol”) (OTC: CVIAQ) (NYSE: CVIA, FMSA) securities between March 15, 2016 and June 29, 2020, inclusive (the “Class Period”). Covia investors have until February 8, 2021 to file a lead plaintiff motion.
If you suffered a loss on your Covia investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/covia-holdings-corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
Covia provides minerals and materials solutions for the industrial and energy markets, including producing proprietary sand for use in fracking.
On March 22, 2019, after the market closed, the Company disclosed that it had “received a subpoena from the SEC seeking information relating to certain value-added proppants marketed and sold by Fairmount Santrol or Covia within the Energy segment since January 1, 2014.”
On this news, the Company’s share price fell $0.45, or 7%, to close at $6.05 per share on March 25, 2019, thereby injuring investors.
Then, on November 6, 2019, during market hours, Covia disclosed that “the SEC ha[d] requested additional information and subpoenaed certain current and former employees to testify.”
On this news, the Company’s share price fell $0.07, or 4.3%, to close at $1.56 per share on November 6, 2019, thereby injuring investors further.
Then, on June 29, 2020, after the market closed, the Company announced that it had filed for petitions under Chapter 11 of the U.S. Bankruptcy Code.
On June 30, 2020, the NYSE delisted the Company, stating in relevant part that “the Company is no longer suitable for listing . . . after the Company’s June 29, 2020 disclosure that the Company filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code.”
On this news, the Company’s share price fell $0.18, or more than 37%, between the closing price on NYSE and resuming trading OTC on July 1, 2020 at $0.30 per share.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Covia's proprietary "value-added" proppants were not necessarily more effective than ordinary sand; (2) Covia's revenues, which were dependent on its proprietary "value-added" proppants, was based on misrepresentations; (3) when Covia insiders raised this issue, defendants did not take meaningful steps to rectify the issue; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Covia securities during the Class Period, you may move the Court no later than February 8, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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