NEW YORK, Dec. 28, 2019 (GLOBE NEWSWIRE) — Rosen Law Firm, a global investor rights law firm, continues to investigate potential breaches of fiduciary duties by the management of ProPetro Holding Corp. (PUMP) resulting from allegations that ProPetro management may have issued materially misleading business information to the investing public.
According to the complaint in a lawsuit filed against ProPetro and several of its officers and directors, ProPetro issued a series of material misstatements and omissions to investors regarding, among other things: (1) as later revealed in the Company’s August 2019 Form 8-K, ProPetro’s executive officers were improperly reimbursed for certain expenses; (2) ProPetro had engaged in certain undisclosed transactions with related parties; (3) ProPetro lacked adequate disclosure controls and procedures; and (4) ProPetro lacked effective internal control over financial reporting.
Following the filing of the lawsuit, co-founders Phillip Gobe and Dale Redman lost their titles of principal executive and finance chief, respectively. Gobe and Redman agreed to reimburse the Company for expenses that were billed to ProPetro.
Additionally, following the filing of the lawsuit, Reuters reported that the SEC was investigating the Company’s financial disclosures. Culper Research also published a report which called the Company’s internal review “a farce[.]” Finally, on November 13, 2019, another $3.6 million in related party transactions was revealed to the public.
The investigation concerns whether ProPetro’s board of directors breached its fiduciary duties to shareholders, grossly mismanaged ProPetro, and/or committed abuses of control as a result of the foregoing.
If you currently own shares of ProPetro, please visit the firm’s website at http://www.rosenlegal.com/cases-register-1680.html. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at [email protected] or [email protected].
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
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