SAN DIEGO & MIDLAND, Texas--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of ProPetro Holding Corp. (NYSE: PUMP) has filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between March 17, 2017 and August 8, 2019, and violations of the Securities Act of 1933 pursuant to its March 2017 initial public offering ("IPO"). ProPetro is an oilfield services company that provides pressure pumping and other related services.
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ProPetro Holding Corp. (PUMP) Accused of Misleading Investors in IPO
According to the complaint, ProPetro held its initial public offering in March 2017, offering 25,000,000 common shares at $14 per share, receiving proceeds of approximately $175 million. In its registration documents, ProPetro stated its board of directors was prepared to "adopt a code of business conduct and ethics in connection with the completion of this offering" and assured that ProPetro would conduct quarterly reviews of its related-party transactions to ensure proper compliance. Then, on August 8, 2019, ProPetro issued a press release stating that it needed to delay its second quarter report and earnings call due to an ongoing review by its audit committee concerning expense reimbursements, including $370,000 improperly reimbursed to senior management, and other transactions involving related parties or conflicts of interest. On this news, ProPetro's share price fell $4.59 per share, or over 26%, to close at $12.75 per share. ProPetro's stock currently trades at around $10.00, an almost 29% decline from its IPO price.
ProPetro Holding Corp. (PUMP) Shareholders Have Legal Options
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.
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