ProPetro Holding Corp. Class Action Lawsuit
- Company Name
- ProPetro Holding Corp.
- Stock Symbol
- Class Period
- March 17, 2017 to August 8, 2019, including purchasers pursuant to the March 17, 2017 initial public offering
- Motion Deadline
- November 15, 2019
- Western District of Texas
On September 16, 2019, the ProPetro Holding Corp. class action lawsuit was filed charging ProPetro, certain of its officers and directors, and the underwriters of ProPetro’s March 2017 initial public offering (“IPO”) with violations of the Securities Exchange Act of 1934 and/or Securities Act of 1933. The ProPetro class action lawsuit was commenced in the Western District of Texas on behalf of persons and entities that: (a) purchased or otherwise acquired ProPetro securities pursuant and/or traceable to ProPetro’s IPO registration statement; and/or (b) purchased or otherwise acquired ProPetro securities between March 17, 2017 and August 8, 2019 (the “Class Period”) and is captioned Logan v. ProPetro Holding Corp., No. 7:19-cv-00217.
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.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased ProPetro securities during the Class Period and/or traceable to ProPetro’s IPO registration statement to seek appointment as lead plaintiff in the ProPetro class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the ProPetro class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the ProPetro class action lawsuit. An investor’s ability to share in any potential future recovery of the ProPetro class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the ProPetro class action lawsuit or have questions concerning your rights regarding the ProPetro class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the ProPetro class action lawsuit must be filed with the court no later than November 15, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.