NEW YORK, Aug. 05, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against of Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (TUSK) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Mammoth securities from October 19, 2017 through June 5, 2019, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/tusk.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Mammoth’s subsidiary, Cobra, improperly obtained two infrastructure contracts with PREPA that totaled over $1.8 billion; (2) specifically, the contracts were awarded as the result of improper steering and not a competitive 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 Wall Street Journal published an article entitled “FEMA Official Probed Over Puerto Rico Power Restoration”. According to the article, a high-ranking Federal Emergency Management Agency official who oversaw the reconstruction of Puerto Rico’s electrical grid after Hurricane Maria is under investigation for allegedly steering work to one of Mammoth’s subsidiaries. The subsidiary had signed separate contracts worth up to $900 million and $945 million to repair downed transmission and distribution lines in Puerto Rico. Following publication of the article, Mammoth’s stock price fell $0.50 per share, or roughly 4%, to close at $11.74 per share on May 24, 2019. Then, on June 5, 2019, the Wall Street Journal published a second article, entitled “Puerto Rico Grid Contractor Caught Up in Federal Probes”. The article reported that the Federal Bureau of Investigation has launched a criminal inquiry into Mammoth’s power restoration work in Puerto Rico, and that the Department of Homeland Security’s Inspector General is probing the Company’s “rates for linemen, equipment and security under $1.85B in contracts with the Puerto Rico Electric Power Authority.” On this news, Mammoth’s stock price fell $1.67 per share, or 14.91%, to close at $9.53 per share on June 5, 2019.
If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/tusk or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Mammoth you have until August 6, 2019 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org