SAN DIEGO & OKLAHOMA CITY--(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:
Mammoth Energy Services Subsidiary's Contracts Are Being Investigated
According to the complaint, Mammoth failed to disclose that its subsidiary, Cobra Acquisitions LLC, had entered into two contracts totaling approximately $1.8 billion of services with Puerto Rico Electric Power Authority ("PREPA") to aid in Puerto Rico's rebuilding efforts. In May 2019, the Wall Street Journal revealed that the Department of Homeland Security was investigating the FEMA Deputy Regional Administrator, who was placed on administrative leave, 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 the FBI 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, and have yet to recover.
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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