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 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%.

The Prospectus contained numerous false and misleading statements concerning Baker Hughes, one of Hi-Crush’s largest customers. For instance, the Prospectus failed to inform shareholders that Baker Hughes had sought to change the material terms of its contract with the Company as early as February 2012 and was threatening to cancel its contract altogether prior to the issuance of the Prospectus. Further, the Prospectus failed to inform shareholders that Baker Hughes began refusing to take or pay for Hi-Crush’s sand, prior to the IPO and the issuance of the accompanying prospectus. The long-term contract with Baker-Hughes was unquestionably material to the success of the Company and the IPO. Indeed, according to Hi-Crush it represented 18.2% of the Company’s revenue in 2012.

Plaintiffs seek to recover pursuant to Sections 11, 12 and 15 of the Securities Act of 1933, for the material misstatements and omissions contained in the Prospectus.

If you purchased Hi-Crush common units pursuant and/or traceable to the Prospectus, you may request that the Court appoint you as lead plaintiff by January 22, 2013. A lead plaintiff is a representative party that acts 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. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Alan D. Weiss, or Derek Behnke), via e-mail at classmember@whafh.com or visit our website at www.whafh.com. All e-mail correspondence should make reference to Hi-Crush.

Copyright Business Wire 2010

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