|[November 27, 2012]
Abraham, Fruchter & Twersky, LLP Has Filed a Class Action Lawsuit against Hi-Crush Partners LP
NEW YORK --(Business Wire)--
Abraham, Fruchter & Twersky, LLP has filed a class action lawsuit in the
United States District Court for the Southern District of New York on
behalf of all persons or entities who purchased the common stock of
Hi-Crush Partners LP ("HCLP" or the "Company")(NYSE:HCLP) in and/or
following the Company's initial public offering ("IPO") completed on or
about August 16, 2012. The complaint charges HCLP, certain of its
officers and directors, and the underwriters of its IPO with violations
of federal securities laws.
The complaint alleges that the Registration Statement issued in
connection with the Company's August 16, 2012 IPO was negligently
prepared and, as a result, contained untrue statements of material
facts, omitted to state other facts necessary to make the statements
made not misleading and was not prepared in accordance with the rules
and regulations governing its preparation.
Specifically, the complaint alleges that the Registration Statement
highlighted Baker Hughes (News - Alert) Incorporated ("Baker Hughes") as one of
Hi-Crush's two largest customers and emphasized their obligation to
purchase sand from Hi-Crush pursuant to a May 2012 contract. However, as
the complaint alleges, the Registraton Statement issued in connection
with the IPO was false and misleading and/or failed to disclose the
following adverse facts: (a) after executing the original supply
contract with Hi-Crush in October 2011, beginning in February 2012,
Baker Hughes began expressing an unwillingness to comply with that
contract; (b) six months prior to the IPO, Baker Hughes had demanded
significant volume and other concessions resulting in the execution of
an amended supply contract; (c) according to Baker Hughes, Hi-Crush had,
or was, violating confidentiality provisions in the supply contract; and
(d) as a result, Baker Hughes would repudiate all of its financial
obligations under the supply contract, materially decreasing Hi-Crush's
revenues and profits attributable to that important supply contract.
On November 13, 2012, HCLP was forced to disclose that Baker Hughes had
unilaterally repudiated that supply contract, stating HCLP was in
breach. In a reaction to this news, shares of HCLP's common stock fell
$5 per share, or 25%, on extremely high trading volume of more than 3.3
million shares trading.
If you purchased the common stock of HCLP pursuant and/or traceable to
the Registration Statement issued in connection with the IPO (the
"Class") and would like to serve as lead plaintiff in this action, you
must move the Court no later than January 21, 2013. 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 a member
of the proposed class.
If you would like to discuss this action or if you have any questions
concerning this notice or your rights as a potential class member or
lead plaintiff, you may contact: Jack Fruchter or Arthur J. Chen of
Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via
e-mail at firstname.lastname@example.org or email@example.com.
Abraham, Fruchter & Twersky, LLP has extensive experience in securities
class action cases, and the firm has been ranked among the leading class
action law firms in terms of recoveries achieved by a survey of class
action law firms conducted by Institutional Shareholder Services.
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
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