Lieff Cabraser Announces Class Action Lawsuits Against Hi-Crush Partners LP
SAN FRANCISCO -- November 30, 2012
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class
action lawsuits have been brought on behalf of all persons who purchased the
common units of Hi-Crush Partners LP (“Hi-Crush” or the “Company”) (NYSE:
HCLP) pursuant and/or traceable to the Company’s Registration Statement and
Prospectus issued in connection with its initial public offering on or about
August 16, 2012 (the “IPO”).
If you purchased or otherwise acquired Hi-Crush common units pursuant and/or
traceable to the Registration Statement and Prospectus, you may move the Court
for appointment as lead plaintiff by no later than January 22, 2013. A lead
plaintiff is a representative party who acts on behalf of other class members
in directing the litigation. Your share of any recovery in the action will not
be affected by your decision of whether to seek appointment as lead plaintiff.
You may retain Lieff Cabraser, or other attorneys, as your counsel in the
Hi-Crush investors who wish to learn more about the action and how to seek
appointment as lead plaintiff should click here or contact Sharon Lee of Lieff
Cabraser toll-free at 1 (800) 541-7358.
Background on the Hi-Crush Securities Class Litigation
The actions are brought against Hi-Crush, certain of its officers and
directors, and the underwriters of the IPO for violations of the Securities
Act of 1933. Hi-Crush, based in Houston, Texas, operates as a producer of
monocrystalline sand, a mineral used as a proppant to enhance the recovery
rates of hydrocarbons from oil and natural gas wells.
The actions allege that the Registration Statement issued in connection with
the IPO was materially false and misleading. Specifically, the Registration
Statement and Prospectus touted certain lucrative long-term contracts with
large customers, including Baker Hughes Incorporated (“Baker Hughes”). It was
not until after the IPO, however, that investors began to learn of significant
problems with the Baker Hughes contract.
On November 13, 2012, the Company issued a press release announcing that Baker
Hughes had unilaterally repudiated the supply contract with Hi-Crush on
September 19, 2012 and claimed that Hi-Crush had breached the contract.
Following this disclosure, the price of Hi-Crush common units fell $5.35 per
unit to close at $15.00, significantly below the IPO price of $17 per common
The actions allege that the Registration Statement and Prospectus failed to
disclose the following material adverse facts: (a) in February 2012, after
executing the original supply contract with Hi-Crush, Baker Hughes began
expressing an unwillingness to comply with that contract; (b) six months prior
to the IPO, Baker Hughes had demanded significant volume and other concessions
resulting in the execution of an amended supply contract; (c) according to
Baker Hughes, Hi-Crush had, or was, violating confidentiality provisions in
the supply contract; and (d) as a result, Baker Hughes would repudiate all of
its financial obligations under the supply contract, materially decreasing
Hi-Crush’s revenues and profits attributable to that important supply
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New
York and Nashville, is a nationally recognized law firm committed to advancing
the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the
top plaintiffs’ law firms in the nation. In compiling the list, the National
Law Journal examined recent verdicts and settlements in addition to overall
track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the
United States to receive this honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm’s representation of
investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 800-541-7358
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