SAN DIEGO and HOUSTON, Nov. 29, 2012 /PRNewswire/ -- Shareholder rights firm Robbins Umeda LLP announces that a complaint has been filed in the U.S. District Court for the Southern District of New York on behalf of investors of Hi-Crush Partners LP (NYSE: HCLP) ("Hi-Crush" or the "Company"). The complaint alleges violations of the Securities Act of 1933 against the Company and certain of its officers and directors concerning Hi-Crush's August 16, 2012 initial public stock offering ("IPO").
Hi-Crush operates as a producer of monocrystalline sand, a mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The complaint alleges that, on August 16, 2012, the Company completed its IPO through the sale of 12,937,500 common units at a price of $17 per unit, receiving, approximately $220 million in gross proceeds. Specifically, the complaint alleges that statements contained in the Company's July 6, 2012, Form S-1 Registration Statement contained materially false and misleading statements to investors about one of the Company's largest customer, Baker Hughes Incorporated. Hi-Crush made repeated references to the strength of its relationship with Baker Hughes, and assured investors that the relationship was a stable source of long-term cash flow. Hi-Crush neglected to inform investors that, prior to its issuance, Baker Hughes had sought to change the terms of, or cancel, its supply contract with Hi-Crush.
Then, on November 13, 2012, Hi-Crush announced that Baker Hughes was unilaterally terminating its supply contract with Hi-Crush. On this news, the Company's share price fell 26%, from $20.35 per share on November 12, 2012 to close at $15.00 on November 13, 2012.If you purchased or otherwise acquired Hi-Crush stock and wish to serve as lead plaintiff, you must act no later than January 22, 2013. To discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website. Robbins Umeda LLP is a nationally recognized leader in securities litigation and 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. For more information, please go to http://www.robbinsumeda.com. Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/hi-crush-partners/ Attorney Advertising. Past results do not guarantee a similar outcome.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV