Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Covia Holdings Corporation (“Covia” or the “Company”) f/k/a Fairmount Santrol Holdings Inc. (“Fairmount Santrol”) (OTC: CVIAQ) (NYSE: CVIA, FMSA) securities between March 15, 2016 and June 29, 2020, inclusive (the “Class Period”). Covia investors have until February 8, 2021 to file a lead plaintiff motion.
Investors suffering losses on their Covia investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
Covia provides minerals and materials solutions for the industrial and energy markets, including producing proprietary sand for use in fracking.
On March 22, 2019, after the market closed, the Company disclosed that it had “received a subpoena from the SEC seeking information relating to certain value-added proppants marketed and sold by Fairmount Santrol or Covia within the Energy segment since January 1, 2014.”
On this news, the Company’s share price fell $0.45, or 7%, to close at $6.05 per share on March 25, 2019, thereby injuring investors.
Then, on November 6, 2019, during market hours, Covia disclosed that “the SEC ha[d] requested additional information and subpoenaed certain current and former employees to testify.”
On this news, the Company’s share price fell $0.07, or 4.3%, to close at $1.56 per share on November 6, 2019, thereby injuring investors further.
Then, on June 29, 2020, after the market closed, the Company announced that it had filed for petitions under Chapter 11 of the U.S. Bankruptcy Code.
On June 30, 2020, the NYSE delisted the Company, stating in relevant part that “the Company is no longer suitable for listing . . . after the Company’s June 29, 2020 disclosure that the Company filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code.”
On this news, the Company’s share price fell $0.18, or more than 37%, between the closing price on NYSE and resuming trading OTC on July 1, 2020 at $0.30 per share.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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.
If you purchased Covia securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20201218005074/en/
Contacts:
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
