Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Hi-Crush Partners LP (“Hi-Crush” or the “Company”) and certain of its officers and directors violated Sections 11, 12(a) (2) and 15 of the Securities Act of 1933.
The first of several class action lawsuits was filed in the U.S. District Court for the Southern District of New York by another law firm on behalf of all persons or entities who purchased the common stock of Hi-Crush Partners LP (NYSE: HCLP) in or following the Company's initial public offering completed on or about August 16, 2012 (the "IPO").
Hi-Crush sold almost 13 million units in an IPO priced at $17.00 on August 16, 2012. In the offering documents the Company disclosed that substantially all of its sales were generated from contracts with just four customers, including customer Baker Hughes, Inc. The complaint alleges that the Registration Statement was false and misleading in that it failed to disclose that: (1) prior to the IPO, Baker Hughes sought to change material terms of and was threatening to cancel its supply agreement with the Company; (2) according to Baker Hughes, Hi-Crush had been or was violating confidentiality provisions of that agreement; and (3) as a result of the foregoing, Baker Hughes would repudiate all of its obligations under its contract with Hi-Crush, materially decreasing the Company’s revenues and profits.
On November 13, 2012, Hi-Crush reported that almost two months prior to that time Baker Hughes had notified the Company of its intent to terminate its supply agreement and that on November 12, Hi-Crush formally terminated that supply agreement and sued Baker Hughes for breach of contract. The price of Hi-Crush shares fell from $20.35 to $15.00 on November 13.Cohen Milstein encourages all investors who purchased Hi-Crush common stock in or following the IPO or former employees with information concerning this matter to contact the firm.
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