NEW YORK, Nov. 26, 2012 (GLOBE NEWSWIRE) -- Gainey & McKenna announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of investors who purchased the shares of Hi-Crush Partners LP ("Hi-Crush" or the "Company") (NYSE:HCLP) in and/or following the Company's initial public offering completed on or about August 16, 2012 (the "IPO"). The Complaint charges Hi-Crush, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933.
The Complaint alleges that Hi-Crush's Registration Statement issued in connection with its August 16, 2012 IPO was negligently prepared and, as a result, contained untrue statements of material facts. Specifically, the Complaint alleges that the Registration Statement highlighted Baker Hughes Incorporated ("Baker Hughes") as one of Hi-Crush's two largest customers and emphasized that it was obligated to purchase from Hi-Crush pursuant to a May 2012 "take-or-pay contract" that "require[d]" Baker Hughes "to pay a specified price for a specified volume of frac sand each month." However, on November 13, 2012, Hi-Crush was forced to disclose that Baker Hughes had unilaterally repudiated that supply contract, stating Hi-Crush was in breach. On this disclosure, Hi-Crush's stock price fell $5 per share, or 25%, on extremely high trading volume of more than 3.3 million shares trading.
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. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. of Gainey & McKenna at (212) 983-1300, or via e-mail at firstname.lastname@example.org.
While Gainey & McKenna did not file the Complaint in this matter, the firm, with offices in New York and New Jersey, regularly prosecutes cases on behalf of shareholders in state and federal courts throughout the United States.
CONTACT: Thomas J. McKenna, Esq. Gainey & McKenna (212) 983-1300 email@example.comSource: Gainey & McKenna