Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Northern District of Ohio on behalf of investors that purchased Covia Holdings Corporation (Other OTC: CVIAQ) securities between March 15, 2016 and June 29, 2020 (the “Class Period”). Investors have until February 8, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
On March 22, 2019, the Company filed a Form 10-K for the fiscal year ended December 31, 2018 (the “2018 10-K”) with the SEC, which provided the Company’s fiscal year 2018 financial results and position. In the 2018 10-K, the Company revealed that it had received a subpoena from the SEC investigating certain value-added proppants.
On this news, the Company’s share prices dropped by $0.45, or approximately 6.9%, from closing at $6.50 on March 22, 2019 to close at $6.05 on March 25, 2019, the next trading day.
On November 6, 2019, the Company filed a Form 10-Q for the quarterly period ended September 30, 2019 (the “3Q19 10-Q”) with the SEC, which provided the Company’s third quarter financial results and position. In the 3Q19 10-Q, the Company revealed that, in addition to the March 18, 2019 SEC subpoena, additional information was requested and subpoenaed regarding current and former employees.
On this news, the Company’s share prices dropped by $0.07, or approximately 4.3%, from opening at $1.63 on November 6, 2019 to close at $1.56.
On June 29, 2020, the Company announced that it had entered into a comprehensive restructuring agreement with lenders and voluntarily filed petitions under Chapter 11 of the United States Bankruptcy Code to implement the agreement.
On June 30, 2020, the NYSE delisted the Company, stating in part, “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 prices fell $0.18, or 37.5%, from closing at $0.48 on June 29, 2020, suspending trading June 30, 2020, and resuming trading OTC on July 1, 2020 at $0.30.
The complaint, filed on December 10, 2020, alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s proprietary ‘value-added’ proppants were not necessarily more effective than ordinary sand; (2) the Company’s revenues, which were dependent on its proprietary ‘value-added’ proppants, was based on misrepresentations; (3) when Company insiders raised this issue, the 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 during the Class Period and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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