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SAN FRANCISCO, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Hagens Berman reminds investors in ProPetro Holding Corp. (NYSE: PUMP) of the firm’s investigation of possible violations of the Federal securities laws.
If you invested in ProPetro before August 9, 2019 and suffered significant losses or have information that may assist the firm’s investigation contact Hagens Berman:
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing
The investigation centers on ProPetro’s financial reporting.
On August 8, 2019, ProPetro announced it could not file its 2Q 2019 Form 10-Q with the SEC. The Company disclosed that its Audit Committee had expanded an ongoing investigation. Initially, the investigation concerned the Company’s disclosures concerning purchase agreements with AFGlobal for hydraulic fracturing fleets. The investigation now includes “expense reimbursements and certain transactions involving related parties or potential conflicts of interest,” according to ProPetro.
The Audit Committee also announced its preliminary findings, including inadequate documentation for the Company’s expense reimbursement practices to senior management, including for hundreds of thousands of dollars paid to the CEO and CFO, as well as material weaknesses in certain internal controls.
These disclosures shocked analysts, including Motley Fool, who warned its readers “to steer clear of this stock until the company files its full report with the SEC.” All told, PUMP shares declined over 30%, wiping out more than $1.3 billion in market capitalization.
On August 30, 2019, the Company announced its General Counsel resigned from the Company. This news reportedly prompted Piper Jaffray analyst John Daniel to downgrade PUMP to neutral from overweight and slash his price target by over 47%. Daniel reportedly told investors in a research note that the resignation adds uncertainty to the Company’s audit review and the situation seems “more complex” than originally perceived.
“We’re focused on investors’ losses and the extent to which management may have misled investors about the Company’s internal controls and previously-issued financial statements,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding ProPetro should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email PUMP@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 510-725-3000