To join this class action, please complete the following Investor Certification.
Oklahoma City, OK (June 10, 2019) – On June 7, 2019, a securities class action lawsuit was filed in the United States District Court for the Western District of Oklahoma against Mammoth Energy Services, Inc. (NASDAQ: TUSK). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is October 19, 2017 through June 5, 2019. More specifically, the complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Mammoth’s subsidiary, Cobra, improperly obtained two infrastructure contracts with PREPA that totaled over $1.8 billion; (2) specifically, the contracts were awarded as the result of improper steering and not a competitive RFP process; and (3) as a result, Defendants statements about Mammoth’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On October 19, 2017, Mammoth announced in a press release that its subsidiary, Cobra Acquisitions LLC (“Cobra”), entered into a contract with the Puerto Rico Electric Power Authority (“PREPA”) to aid in the rebuilding of Puerto Rico’s energy infrastructure.
On May 24, 2019, the Wall Street Journal published an article entitled “FEMA Official Probed Over Puerto Rico Power Restoration,” stating that the Federal Emergency Management Agency (“FEMA”) Deputy Regional Administrator, who oversaw FEMA’s response
to the damage wrought by Hurricane Maria, was under investigation by the Department of Homeland Security (“DHS”), relieved of her duties and placed on administrative leave over allegations that she steered work to Cobra.
Then, on June 5, 2019, while the market was open, the Wall Street Journal published an article entitled Puerto Rico Grid Contractor Caught Up in Federal Probes, stating that the Federal Bureau of Investigation had “opened a related criminal inquiry” into the origin of Cobra’s contracts with PREPA.On this news, the Company’s shares fell $5.09 per share or over 45% over the next two trading days to close at $6.11 per share on June 6, 2019, further damaging investors.
Plaintiff seeks to recover damages on behalf of all Mammoth Energy Services, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, August 6, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org