Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor LLP announce that a federal class action lawsuit has been filed against Nuverra Environmental Solutions, Inc. (“Nuverra” or “Company”) (NYSE: NES) and several of its officers and directors for acts taken place during the period of March 12, 2013 to August 23, 2013 (the “Class Period”).
Based upon the allegations in the class action, the firms are investigating additional legal claims against the officers and Board of Directors of Nuverra. If you are an affected Nuverra shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com, or Zach Groover at Powers Taylor LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org. There is no cost or fee to you.
In the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants misrepresented and/or failed to disclose that, among other things: (a) rather than the outsized growth requiring the hiring of additional employees and the deployment of additional capital producing assets to expand operations, the Company was not experiencing any organic growth in its Shale Solutions segment; (b) Nuverra’s business in the Baaken basin area reduced due to an increase in competition from new trucking companies; (c) oversupply of tanks and other rental products caused a collapse in rental rates; (d) oil and gas exploration and production companies had been investing in their own gathering and disposal systems for water; (e) certain fracking projects were not completed due to snow in the first quarter of 2013 and rain in the second quarter of 2013; (f) the assets acquired in the TFI acquisition were not producing due to weakness in the used oil market and Nuverra’s Industrial Solutions segments were declining; (g) Nuverra was experiencing operational problems in its Eagle Ford area; (h) Nuverra was employing high-priced subcontractors in the Marcellus and Utica shale areas, lowering its overall profit margins; and (i) due to the above, Nuverra was not on track to achieve the financial results Defendants had led the market to expect during the Class Period. According to the complaint, when these facts were finally revealed to the market, Nuverra’s shares dropped dramatically.