SAN DIEGO & OKLAHOMA CITY, Okla.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Mammoth Energy Services, Inc. (NASDAQ: TUSK) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between October 19, 2017 and June 5, 2019. Mammoth Energy Services operates as an oilfield service company.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/mammoth-energy-services/
Mammoth Energy Services Subsidiary's Contracts Are Being Investigated
According to the complaint, in October 2017, Mammoth announced that its subsidiary, Cobra Acquisitions LLC, entered into a contract with Puerto Rico Electric Power Authority ("PREPA") to aid in Puerto Rico's rebuilding efforts. In May 2018, Mammoth announced that Cobra had entered into a second $900 million contract with PREPA. In total, Cobra had two emergency master services agreements for up to approximately $1.8 billion of services. In May 2019, the Wall Street Journal revealed that the Federal Emergency Management Agency Deputy Regional Administrator was under investigation by a federal agency over allegations that she steered work to Cobra. On this news, Mammoth's shares fell over 10% over the next three trading days. Then, in June 2019, The Wall Street Journal published another article reporting that a federal agency had opened a related criminal inquiry into the origin of Cobra's contracts with PREPA. On this news, Mammoth's shares fell over 45% over the next two trading days to close at $6.11 per share on June 6, 2019.
Mammoth Energy Services Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, email@example.com or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Check out Stock Watch, our free investment monitoring program for shareholders.
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