PHILADELPHIA, Sept. 17, 2019 (GLOBE NEWSWIRE) — Kehoe Law Firm, P.C. announces that a class action lawsuit has been filed in United States District Court on behalf of individuals and entities that purchased, or otherwise acquired, the securities of ProPetro Holding Corp. (“ProPetro” or the “Company”) (NYSE: PUMP) a) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with ProPetro’s March 2017 initial public offering (“IPO”); and/or b) between March 17, 2017 and August 8, 2019, inclusive (the “Class Period”).
The lawsuit is pursuing claims under Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you purchased ProPetro securities and suffered losses, please contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the lawsuit or the securities investigation.
In March 2017, ProPetro concluded its IPO, in which it sold 25 million shares of common stock at $14.00 per share.
On August 8, 2019, after the market closed, ProPetro issued a press release delaying its second quarter earnings conference call and quarterly report, citing an ongoing review by its audit committee.
Specifically, ProPetro announced its “. . . preliminary financial and operational results for the second quarter of 2019 and delayed its second quarter earnings conference call in order to allow additional time to complete its Quarterly Report on Form 10-Q for the three months ended June 30, 2019 (the “Form 10-Q”).” [Emphasis added.]
The Company also stated that
[t]he delay in the Form 10-Q is due to an ongoing review by the audit committee of the Company’s board of directors which initially focused on the disclosure of agreements previously entered into by the Company with AFGlobal for the purchase of Durastim® hydraulic fracturing fleets and effective communications related thereto. A corrective release regarding these agreements which addressed the disclosure issue was previously issued on June 28, 2019.
As part of the review, the audit committee expanded its work to include, among other items, expense reimbursements and certain transactions involving related parties or potential conflicts of interest, as described in the Company’s current report on Form 8-K filed today, August 8, 2019. While the additional work has resulted in the reversal of certain expense reimbursements, the establishment of a disclosure committee and other improvements, the audit committee and management have not identified to date any items that would require revision or restatement of the Company’s historical financial statements. The audit committee expects to complete its review within the next 30 days. [Emphasis added.]
On this news, the Company’s stock price fell $4.59 per share, or over 26%, to close at $12.75 per share on August 9, 2019, thereby injuring investors.
By the time of the class action lawsuit, ProPetro stock traded as low as $11.44 per share, a decline of approximately 18% from the $14 per share IPO price.
The class action complaint alleges that throughout the Class Period, ProPetro Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about ProPetro’s business, operations, and prospects. Specifically, ProPetro Defendants failed to disclose to investors: (1) that ProPetro’s executive officers were improperly reimbursed for certain expenses; (2) that the Company had engaged in certain undisclosed transactions with related parties; (3) that the Company lacked adequate disclosure controls and procedures; (4) that ProPetro lacked effective internal control over financial reporting; and (5) that, as a result of the foregoing, Defendants’ positive statements about ProPetro’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
ProPetro shareholders who suffered losses are encouraged to contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the lawsuit or the securities investigation.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion dollars on behalf of institutional and individual investors.
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