World News: 22:00 GMT Wednesday 12th June 2019. [Faruqi & Faruqi LLP via Globe Newswire via SPi World News]
NEW YORK, June 12, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Mammoth Energy Services, Inc. (“Mammoth Energy” or the “Company”) (NASDAQ:TUSK) of the August 6, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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The lawsuit has been filed in the U.S. District Court for the Western District of Oklahoma on behalf of all those who purchased Mammoth Energy securities between October 19, 2017 - June 5, 2019 (the “Class Period”). The case, No. 19-cv-00522 was filed on June 7, 2019, and has been assigned to Judge Scott L. Palk
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and or failing to disclose that: (1) Mammoth’s subsidiary, Cobra, improperly obtained two infrastructure contracts with the Puerto Rico Electric Power Authority (“PREPA”) 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 (“RFP”) process; and (3) as a result, 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 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 stock price fell—over three trading days—from $12.24 per share on May 23, 2019 to $10.99 per share on May 29, 2019: a $1.25 or 10.21% drop.
Then, on June 5, 2019, the published an article titled, “Puerto Rico Grid Contractor Caught Up in Federal Probes”. According to the article, the Department of Homeland Security’s Inspector General is investigating one of Mammoth Energy’s subsidiaries in Puerto Rico to determine how the company came to dominate the power restoration efforts there since 2017. The Federal Bureau of Investigation opened a related criminal investigation.
On this news, the Company' stock price fell—over two trading days—from $11.20 per share on June 5, 2019 to $6.11 per share on June 6, 2019: a $5.09 or 45.45% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Mammoth Energy’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Globe Newswire: 22:00 GMT Wednesday 12th June 2019
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