Harwood Feffer LLP Announces Investigation of Hi-Crush Partners LP
NEW YORK, Nov. 28, 2012
NEW YORK, Nov. 28, 2012 /PRNewswire/ --Harwood Feffer LLP (www.hfesq.com) is
investigating potential claims against the board of directors of Hi-Crush
Partners LP ("Hi-Crush" or the "Company") (NYSE: HCLP), concerning whether the
board has breached its fiduciary duties to shareholders.
(Logo: http://photos.prnewswire.com/prnh/20120215/MM54604LOGO )
Hi-Crush went public on August 16, 2012. The Company's Registration Statement
and Prospectus issued in connection with the IPO disclosed that the Company
relied on four major customers for a large part of its business. One of the
large customers was a company called Baker Hughes. The IPO documents stated
that due to the presence of long-term supply contracts with four large
customers, Hi-Crush boasted "long-term cash flow stability."
However, beginning in February 2012, Baker Hughes had expressed unwillingness
to comply with its contract, and that it had demanded significant concessions
from Hi-Crush. At the time, Hi-Crush believed that Baker Hughes was in
violation of certain provisions in the original contract. Although there was
reason to believe that the Company's relationship with one of its primary
customers was in jeopardy, the IPO documents were never amended to same and
shareholders had no way of knowing that the Company's "long-term cash flow
stability" was now in doubt.
On November 13, 2012, the truth began to be revealed when Hi-Crush disclosed
that the Company had formally terminated its supply agreement with Baker
Hughes and that litigation would result. On this news, Hi-Crush shares
dropped over 25% in one day.
Our investigation concerns whether the Hi-Crush's board of directors has
breached its fiduciary duties to shareholders, grossly mismanaged the Company,
and/or committed abuses of control in connection with the foregoing.
If you own Hi-Crush shares and wish to discuss this matter with us, or have
any questions concerning your rights and interests with regard to this matter,
Robert I. Harwood, Esq.
Benjamin Sachs-Michaels, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
Harwood Feffer has been representing individual and institutional investors
for many years, serving as lead counsel in numerous cases in federal and state
courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for
more information about the firm.
Attorney Advertising. © 2012 Harwood Feffer LLP. The law firm responsible for
this advertisement is Harwood Feffer LLP (www.hfesq.com). Prior results do not
guarantee or predict a similar outcome with respect to any future matter.
SOURCE Harwood Feffer LLP
Press spacebar to pause and continue. Press esc to stop.