CARBO Ceramics Inc. (NYSE:CRR) Investor Sues Directors over Alleged Wrongdoing
A current investor in NYSE:CRR shares filed a lawsuit against directors of CARBO Ceramics over alleged breaches of fiduciary duties and NYSE:CRR stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWire) -- 03/14/2012 --An investor in NYSE:CRR shares filed a lawsuit against certain officers and directors of CARBO Ceramics Inc over alleged breaches of fiduciary duties in connection with certain financial statements.
Investors who are current long term stockholders of CARBO Ceramics Inc. (NYSE:CRR) shares have certain options and NYSE:CRR stockholders should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants actions resulted in damages to Carbo Ceramics’ reputation, goodwill, and standing in the business community and those actions have exposed Carbo Ceramics to hundreds of millions of dollars in potential liability for violations of state and federal law.
The plaintiff says that certain defendants ignored glaring red flags and disseminated improper statements regarding Carbo Ceramics’ growth and hopelessly aggressive prospects relating to its ceramic proppant business. The combination of the improper statements by certain defendants and the acquiescence and active approval of the wrongdoing by other defendants caused Carbo Ceramics to improperly represent Carbo Ceramics’ present and future business health.
In fact, CARBO Ceramics Inc. reported that its annual Revenue rose from $341.87million in 2009 to $625.71million in 2011 and its Net Income increased over the same time periods from $52.81million to $130.14million.
Shares of CARBO Ceramics Inc. (NYSE:CRR) surged from as low as $27.43 per share in March ’09 to as high as $180 per share in July 2011.
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.”
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.
Those who are current long term investors in shares of CARBO Ceramics Inc. (NYSE:CRR) have certain options and NYSE:CRR stockholders should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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Shareholders Foundation, Inc.
View this press release online at: http://rwire.com/131612