According to the Registration Statement, almost all of Hi-Crush’s frac sand was being sold to four “leading investment grade-rated pressure pumping service providers under long-term, take-or-pay contracts that require [its] customers to pay a specified price for a specified volume of frac sand each month.” Emphasizing the strength of those customer relationships, the Registration Statement highlighted one of the four customers, Baker Hughes, as being a particularly important revenue source.However, on November 13, 2012, Hi-Crush filed a Form 8-K with the U.S. Securities and Exchange Commission (“SEC”) announcing that the Company had formally terminated its supply agreement with Baker Hughes. The 8-K goes on to describe that Baker Hughes provided notice back on September 19, 2012 of their intention to terminate the contract and that both parties were unable to reach a mutually satisfactory resolution of the matter. On this news, shares in Hi-Crush plummeted 26%, closing at $15.00 per share on November 13, 2012, from a close of $20.35 per share on November 12, 2012, on volume of over 3.3 million shares. If you wish to serve as lead plaintiff, you must move the Court no later than January 21, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.