Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit On Behalf Of Hi-Crush Partners LP Investors
On November 27, 2012, Wolf Haldenstein Adler Freeman & Herz LLP filed a
class action lawsuit in the United States District Court, Southern
District of New York, on behalf of all persons who purchased Hi-Crush
On November 27, 2012, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, Southern District of New York, on behalf of all persons who purchased Hi-Crush Partners LP (“Hi-Crush” or the “Company”) (NYSE: HCLP) common units pursuant and/or traceable to the Prospectus (the “Class”), against the Company and certain of the Company’s officers and directors, alleging claims under Sections 11, 12, and 15 of the Securities Act of 1933 (“Securities Act”). The case name is styled Sesholtz v. Hi-Crush Partners LP, et al., Civil Action No. 12-8610. 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 details that on August 21, 2012, Hi-Crush completed its initial public offering (“IPO”) of 12,937,500 common units representing limited partner interests in the Partnership (“Common Units”) sold at a price to the public of $17 per common unit under the symbol “HCLP.” The offering was described in a Form S-1 Registration Statement filed with the SEC and disseminated to investors on July 6, 2012, and it was amended on August 3, 2012 and August 7, 2012. Among other things, the Prospectus touted the existence and benefit of specific lucrative long-term contracts with large customers, including Baker Hughes Incorporated (“Baker Hughes”). It was not until after the IPO that the truth about the problems with Baker Hughes began to emerge. On November 13, 2012, the Company issued a press release in which Hi-Crush announced that Baker Hughes had terminated the supply agreement with Hi-Crush on September 19, 2012. As a result of the Company’s disclosure of its loss of the Baker Hughes contract, the price of Hi-Crush Common Units dropped $5.35 to close at $15.00 - a one-day decline of over 26%.