BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims against Hi-Crush Partners LP (“Hi-Crush” or the “Company”) (NYSE:HCLP) concerning possible violations of federal securities laws.
“loss of or reduced purchasing by any of them could adversely affect our results of operations.”
Hi-Crush engages in the mining and processing of raw sands for use in hydraulic fracturing operations in oil and gas wells. The investigation focuses on allegations that certain statements issued by Hi-Crush were false and misleading concerning the Company’s business and financial prospects.
In connection with the Company's August 16, 2012 initial public offering, Hi-Crush filed a Prospectus and Registration Statement with the Securities and Exchange Commission stating that Baker Hughes Oilfield Operations, Inc. (“Baker Hughes”), a provider of pressure pumping services in North America, is also one of the Company’s largest customers. The Company further stated that substantially all of its sales are generated under contracts with four customers, and that the “loss of or reduced purchasing by any of them could adversely affect our results of operations.”
The investigation is related to the Company’s November 13, 2012 disclosure that on September 19, 2012 Baker Hughes provided notice that it was terminating a supply agreement for “frac sand” with the Company. On November 12, 2012 Hi-Crush formally terminated the supply agreement and filed a lawsuit in the State District Court of Harris County, Texas, against Baker Hughes, alleging wrongful termination of the supply agreement.
Following this news, shares of Hi-Crush fell $5.13 from the previous day’s closing price, to a closing price of $15 on November 16, 2012 on heavy volume of more than 3.3 million shares traded.
If you purchased Hi-Crush common stock on August 16, 2012 or thereafter, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.