NEW YORK, July 01, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) and certain of its officers. The class action, filed in United States District Court, for the Western District of Oklahoma, and indexed under 19-cv-00560, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired publicly traded Mammoth securities from October 19, 2017 through June 5, 2019, inclusive (the “Class Period”). Plaintiff seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Mammoth securities during the class period, you have until August 6, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Mammoth purports to operate as an oilfield service company operating in three segments: Infrastructure Services, Pressure Pumping Services, and Natural Sand Proppant Services. The Company serves government-funded utilities, private and public investor-owned utilities, co-operative utilities, independent oil and natural gas producers and land-based drilling contractors in North America.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Mammoth's subsidiary, Cobra Acquisitions LLC, improperly obtained two infrastructure contracts with Puerto Rico Electric Power Authority that totaled over $1.8 billion; (2) specifically, the contracts were awarded as the result of improper steering and not a competitive Request For Proposal process; and (3) as a result, the defendants' statements about Mammoth's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On May 24, 2019, the Wall Street Journal published an article entitled “FEMA Official Probed Over Puerto Rico Power Restoration,” stating that the Federal Emergency Management Agency (“FEMA”) Deputy Regional Administrator, who oversaw FEMA’s response to the damage wrought by Hurricane Maria, was under investigation by the Department of Homeland Security (“DHS”), relieved of her duties and placed on administrative leave over allegations that she steered work to Cobra.
On this news, the Company’s shares fell $1.25 per share or over 10% over the next three trading days on unusually high volume to close at $10.99 per share on May 29, 2019, damaging investors.
Then, on June 5, 2019, while the market was open, the Wall Street Journal published an article entitled Puerto Rico Grid Contractor Caught Up in Federal Probes, stating that the Federal Bureau of Investigation had “opened a related criminal inquiry” into the origin of Cobra’s contracts with PREPA.
On this news, the Company’s shares fell $5.09 per share or over 45% over the next two trading days to close at $6.11 per share on June 6, 2019, further damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.