The Complaint alleges that Hi-Crush's Registration Statement issued in connection with its August 16, 2012 IPO was negligently prepared and, as a result, contained untrue statements of material facts. Specifically, the Complaint alleges that the Registration Statement highlighted Baker Hughes Incorporated ("Baker Hughes") as one of Hi-Crush's two largest customers and emphasized that it was obligated to purchase from Hi-Crush pursuant to a May 2012 "take-or-pay contract" that "require[d]" Baker Hughes "to pay a specified price for a specified volume of frac sand each month." However, on November 13, 2012, Hi-Crush was forced to disclose that Baker Hughes had unilaterally repudiated that supply contract, stating Hi-Crush was in breach. On this disclosure, Hi-Crush's stock price fell $5 per share, or 25%, on extremely high trading volume of more than 3.3 million shares trading.
New York, NY: A securities class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of investors who purchased the shares of Hi-Crush Partners LP ("Hi-Crush" or the "Company") (NYSE:HCLP) in and/or following the Company's initial public offering completed on or about August 16, 2012 (the "IPO"). The Complaint charges Hi-Crush, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933.
The Complaint alleges that Hi-Crush's Registration Statement issued in connection with its August 16, 2012 IPO was negligently prepared and, as a result, contained untrue statements of material facts. Specifically, the Complaint alleges that the Registration Statement highlighted Baker Hughes Incorporated ("Baker Hughes") as one of Hi-Crush's two largest customers and emphasized that it was obligated to purchase from Hi-Crush pursuant to a May 2012 "take-or-pay contract" that "require[d]" Baker Hughes "to pay a specified price for a specified volume of frac sand each month." However, on November 13, 2012, Hi-Crush was forced to disclose that Baker Hughes had unilaterally repudiated that supply contract, stating Hi-Crush was in breach. On this disclosure, Hi-Crush's stock price fell $5 per share, or 25%, on extremely high trading volume of more than 3.3 million shares trading.
The Complaint alleges that Hi-Crush's Registration Statement issued in connection with its August 16, 2012 IPO was negligently prepared and, as a result, contained untrue statements of material facts. Specifically, the Complaint alleges that the Registration Statement highlighted Baker Hughes Incorporated ("Baker Hughes") as one of Hi-Crush's two largest customers and emphasized that it was obligated to purchase from Hi-Crush pursuant to a May 2012 "take-or-pay contract" that "require[d]" Baker Hughes "to pay a specified price for a specified volume of frac sand each month." However, on November 13, 2012, Hi-Crush was forced to disclose that Baker Hughes had unilaterally repudiated that supply contract, stating Hi-Crush was in breach. On this disclosure, Hi-Crush's stock price fell $5 per share, or 25%, on extremely high trading volume of more than 3.3 million shares trading.
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