Hi-Crush Partners LP (NYSE:HCLP) Investor Alert: Lawsuit Alleges False and Misleading Statements

A lawsuit was filed for certain investors in Hi-Crush Partners LP (NYSE:HCLP) units over alleged securities laws violations by Hi-Crush Partners LP. Deadline: Jan. 21, 2013. NYSE:HCLP investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

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San Diego, CA -- (SBWire) -- 12/03/2012 --An investor in units of Hi-Crush Partners LP (NYSE:HCLP) filed a lawsuit in the U.S. District Court of the Southern District of New York against Hi-Crush Partners LP over alleged securities laws violations in connection with certain allegedly false and misleading statements in the initial public offering.

Investors who purchased units of Hi-Crush Partners LP (NYSE:HCLP) between August 16, 2012, and November 13, 2012, have certain options and there are short and strict deadlines running. Deadline: Jan 21. 2013. NYSE:HCLP investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased the common stock of Hi-Crush Partners LP (NYSE: HCLP) in and/or following the Company’s initial public offering (“IPO”) completed on or about August 16, 2012, that Hi-Crush Partners LP and certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933 violated the Securities Act of 1933.

On August 16, 2012, Hi-Crush Partners LP raised proceeds of approximately $220 million in its initial public offering (“IPO”), selling approximately 12.9 million common units at $17 per unit.

Units of Hi-Crush Partners LP (NYSE:HCLP) reached on Sept. 24, 2012, $22.74 per unit.

However, the plaintiff alleges that the Registration Statement issued in connection with Hi-Crush Partners’ initial public offering completed on or about August 16, 2012 was allegedly negligently prepared and, as a result, contained allegedly untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, so the plaintiff, the Registration Statement allegedly highlighted that Baker Hughes Incorporated as one of Hi-Crush Partners’ two largest customers and emphasized that it was obligated to purchase sand from Hi-Crush Partners LP pursuant to a May 2012 “take-or-pay contract” that “require[d]” Baker Hughes Incorporated “to pay a specified price for a specified volume of frac sand each month.”

Then on November 13, 2012, before the market opened, Hi-Crush Partners LP reported its third quarter 2012 results. Among other things, Hi-Crush Partners LP also disclosed the termination of the supply agreement with Baker Hughes Oilfield Operations, Inc. Hi-Crush Partners LP said that on September 19, 2012, Baker Hughes provided notice that it was terminating the contract. Hi-Crush Partners LP said it believes that Baker Hughes’ termination was wrongful and a direct effort to circumvent its binding purchase obligations under the supply agreement.

Units of Hi-Crush Partners LP (NYSE:HCLP) dropped from $20.79 per unit on Nov. 9, 2012 to as low as $13.44 per unit on November 13, 2012.

On November 21, 2012 NYSE:HCLP units closed at $16.01.

Those who purchased units of Hi-Crush Partners LP (NYSE:HCLP) between August 16, 2012, and November 13, 2012, have certain options and there are short and strict deadlines running. Deadline: Jan 21. 2013. NYSE:HCLP investors should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

Media Relations Contact

Trevor Allen
General Manager
Shareholders Foundation, Inc.
858-779-1554
http://www.ShareholdersFoundation.com

View this press release online at: http://rwire.com/184392