Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court, District of Arizona, on behalf of all persons who purchased or otherwise acquired shares of the common stock of Nuverra Environmental Solutions, Inc. (“Nuverra” or the “Company”) [NYSE:NES] between November 11, 2011 and August 23, 2013, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors (“Defendants”), alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5].
The litigation is styled Monroe v. Nuverra Environmental Solutions, Inc, et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
The Complaint alleges that during the Class Period, Nuverra engaged in a fraudulent scheme to artificially inflate the Company’s stock price by disseminating materially false and misleading statements, and failing to disclose material information regarding the Company’s true financial scorecard and operations, thereby damaging Plaintiff and other similarly situated investors. In particular, the Company misrepresented or failed to disclose that (i) it was overleveraged and experiencing a liquidity crisis; (ii) it was experiencing a significant decline in its operational results, especially in the Eagle Ford Shale area; (iii) its default risk materially increased because of its poor financial performance; and (iv) Defendants therefore lacked a reasonable basis for their positive statements about the Company during the Class Period.
On July 30, 2013, the Company issued a press release announcing its preliminary financial results for the quarter ended June 30, 2013 and, in particular, that its earnings before interest, taxes, depreciation, and amortization (“EBITDA”) were, in fact, significantly lower than previously projected. On this news, the price of Nuverra common stock dropped precipitously from a closing of $3.49 per share on July 29, 2013 to a closing of $3.04 per share on July 30, 2013, for a sharp decrease of approximately 13%.
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