NEW YORK--(EON: Enhanced Online News)--Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court, District of Arizona, on behalf of all persons who purchased or otherwise acquired shares of the common stock of Nuverra Environmental Solutions, Inc. (“Nuverra” or the “Company”) [NYSE:NES] between November 11, 2011 and August 23, 2013, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors (“Defendants”), alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5].
The litigation is styled Monroe v. Nuverra Environmental Solutions, Inc, et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
The Complaint alleges that during the Class Period, Nuverra engaged in a fraudulent scheme to artificially inflate the Company’s stock price by disseminating materially false and misleading statements, and failing to disclose material information regarding the Company’s true financial scorecard and operations, thereby damaging Plaintiff and other similarly situated investors. In particular, the Company misrepresented or failed to disclose that (i) it was overleveraged and experiencing a liquidity crisis; (ii) it was experiencing a significant decline in its operational results, especially in the Eagle Ford Shale area; (iii) its default risk materially increased because of its poor financial performance; and (iv) Defendants therefore lacked a reasonable basis for their positive statements about the Company during the Class Period.
On July 30, 2013, the Company issued a press release announcing its preliminary financial results for the quarter ended June 30, 2013 and, in particular, that its earnings before interest, taxes, depreciation, and amortization (“EBITDA”) were, in fact, significantly lower than previously projected. On this news, the price of Nuverra common stock dropped precipitously from a closing of $3.49 per share on July 29, 2013 to a closing of $3.04 per share on July 30, 2013, for a sharp decrease of approximately 13%.
Less than one month later, on August 23, 2013, it was reported in the news that the Company’s financial outlook had been severely impaired by, among other things, a series of ill-advised acquisitions. On this news, the price of Nuverra common stock declined another 11.76%, closing at $2.40 per share on August 26, 2013.
In ignorance of the false and misleading nature of the statements described in the Complaint, and the deceptive and manipulative devices and contrivances employed by said Defendants, Plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of Nuverra common stock. Had Plaintiff and the other members of the Class known the truth, they would not have purchased said common stock, or would not have purchased them at the inflated prices that were paid.
If you purchased NES common stock during the Class Period, you may request that the Court appoint you as lead plaintiff by November 4, 2013. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq.), via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com. All e-mail correspondence should make reference to “Nuverra”.