Fairmount Santrol Holdings Inc.
Lead Plaintiff Deadline: 02/08/2021
SUMMARY OF CASE:
A securities class action has been filed against Fairmount Santrol Holdings Inc. (FMSA) on behalf of persons or entities who purchased or otherwise acquired publicly traded Covia Holdings Corporation and/or Fairmount Santrol Holdings Inc.’s (together as “Covia” or the “Company”) securities publicly traded on the NYSE or OTC between March 15, 2016 through June 29, 2020. This case has been filed in the USDC – N.D.OH.
The Complaint alleges that the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Covia’s proprietary “value-added” proppants were not necessarily more effective than ordinary sand; (2) Covia’s revenues, which were dependent on its proprietary “value-added” proppants, was based on misrepresentations; (3) when Covia insiders raised this issue, defendants did not take meaningful steps to rectify the issue; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
After the Company’s June 29, 2020 announcement, the Company’s share prices fell $0.18, or 37.5%, from closing at $0.48 onJune 29, 2020, suspending trading June 30, 2020, and resuming trading OTC on July 1, 2020 at$0.30.