ProPetro Holding Corp. (Nasdaq: PUMP)
A class action has been filed in the United States District Court for the Western District of Texas on behalf of purchasers of ProPetro Holding Corp. (Nasdaq: PUMP) securities during the period between March 17, 2017 to August 8, 2019, including purchasers pursuant to the March 17, 2017 initial public offering, (the “Class Period”).
ProPetro is an oilfield services company that provides hydraulic fracturing and complementary services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources.
In March 2017, ProPetro completed its IPO, selling 25 million shares of ProPetro common stock to the public at $14.00 per share.
The ProPetro class action alleges that throughout the Class Period and in the registration statement issued in connection with the IPO, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about ProPetro’s business, operations, and prospects. Specifically, defendants failed to disclose that ProPetro’s executive officers were being improperly reimbursed for certain expenses, that ProPetro had engaged in certain undisclosed transactions with related parties, and that ProPetro lacked adequate disclosure controls and procedures and effective internal control over financial reporting. As a result of this information being withheld from the market, ProPetro securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of nearly $25 per share.
Then on August 8, 2019, after the market closed, ProPetro announced it would have to delay its second quarter earnings conference call and quarterly report, citing an ongoing review by its Audit Committee. In a Form 8-K filed with the U.S. Securities and Exchange Commission on the same day, ProPetro stated that the review concerned, among other things, expense reimbursements and certain transactions involving related parties or potential conflicts of interest. The Form 8-K also stated that approximately $370,000 had been improperly reimbursed to members of senior management since the IPO. Moreover, ProPetro expected to report a material weakness in its internal disclosure controls. On this news, ProPetro’s stock price fell $4.59 per share, or over 26%, to close at $12.75 per share on August 9, 2019.
If you are a current shareholder and/or purchased stock during the period between March 17, 2017 to August 8, 2019, including purchasers pursuant to the March 17, 2017 initial public offering, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.