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Oklahoma City, OK (September 17, 2019) – On September 16, 2019, a securities class action lawsuit was filed in the United States District Court for the Western District of Texas against ProPetro Holding Corp. (NYSE: PUMP). The complaint alleges violations of federal securities laws, Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations and prospects during the Class Period, on behalf of persons and entities that purchased or otherwise acquired ProPetro Holding, Inc. securities: a) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s March 2017 initial public offering (“IPO or the “Offering”); and/or b) between March 17, 2017 and August 8, 2019, inclusive. More specifically, the complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company’s executive officers were improperly reimbursed for certain expenses; (2) that the Company had engaged in certain undisclosed transactions with related parties; (3) that the Company lacked adequate disclosure controls and procedures; (4) that the Company lacked effective internal control over financial reporting; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On March 20, 2017, the Company filed its prospectus with the Securities and Exchange Commission (“SEC”), in which it sold 25 million shares of common stock at $14.00 per share.
On August 8, 2019, after the market closed, the Company issued a press release delaying 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 SEC on the same day, the Company 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, the Company expected to report a material weakness in its internal control over disclosure.
On this news, the Company’s share price fell $4.59 per share, or over 26%, to close at $12.75 per share on August 9, 2019, on unusually high trading volume.
By the commencement of the complaint, the Company’s stock was trading as low as $11.44 per share, a nearly 18% decline from the $14 per share IPO price.
Plaintiff seeks to recover damages on behalf of all ProPetro Holding Corp. 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 Friday, November 15, 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