An investigation on behalf of current long term investors in CARBO Ceramics Inc. (NYSE:CRR) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSE:CRR stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/21/2012 -- The Shareholders Foundation announces that certain directors and officers of CARBO Ceramics are under investigation over possible breaches of fiduciary duties.
Investors who are current long term investors in CARBO Ceramics Inc. (NYSE:CRR) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
On October 27, 2011, CARBO Ceramics Inc. announced its Third Quarter 2011 Earnings. Among other things, CARBO Ceramics Inc. (NYSE: CRR) reported that its revenues for the third quarter of 2011 increased 41 percent, or $48.6 million, when compared to the third quarter of 2010 and its Net income for the third quarter of 2011 increased 83 percent, or $16.7 million, compared to the third quarter of 2010.
Shares of CARBO Ceramics Inc. (NYSE:CRR) increased in November 2011 to almost $156 per share and traded on January 24, 2012 as high as $133 per share.
Then on January 26, 2012, CARBO Ceramics Inc. announced its Fourth Quarter and Fiscal Year 2011 Earnings. Among other things, CARBO Ceramics Inc said that: ”The severe decline in natural gas prices during the quarter led E&Ps to reduce capital spending in natural gas basins and increase capital spending in liquids-rich basins. The largest impact associated with this shift in capital spending was a reduction of approximately 70 percent in [its] Haynesville proppant sales volumes from the third quarter of 2011, which was partially offset by growth in the liquids-rich plays and international markets.”
Following the announcement NYSE:CRR shares fell from over $133 per share on January 25th to slightly above $103 on January 26th and declined to February 8, 2012 to as low as $90.46 per share.
Shortly after that an investor filed a lawsuit in the U.S. District Court for the Southern District of New York. The plaintiff alleges that Carbo Ceramics, Inc violated the under the Securities Exchange Act of 1934 by issuing between October 27, 2011 and January 26, 2012, allegedly materially false and misleading statement regarding Carbo Ceramics’ business and prospects.
While the lawsuit against Carbo Ceramics, Inc was only filed for investors who purchased NYSE:CRR between October 27, 2011 and January 26, 2012 the investigation by a law firm focuses on potential shareholder claims for investors who either purchased early within that time frame or purchased prior to October 27, 2011 and currently still hold NYSE:CRR shares. Specifically, the investigation concerns whether certain CARBO Ceramics Inc. (NYSE:CRR) officers and directors breached their fiduciary duties and are liable in connection with the allegations made in the lawsuit.
Those who purchased shares of CARBO Ceramics Inc. (NYSE:CRR), you have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego