Faruqi & Faruqi, LLP Files Class Action Lawsuit Against CARBO Ceramics Inc. (CRR)
NEW YORK, April 10, 2012 /PRNewswire/ -- Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York, case no. 12 CV 2807, on behalf of all persons who purchased or sold CARBO Ceramics Inc. ("CARBO Ceramics" or the "Company") (NYSE: CRR) options contracts between October 27, 2011 and January 26, 2012 inclusive (the "Class Period") and suffered damages as a result.
If you wish to obtain information concerning this action or view a copy of the complaint, you can do so by clicking here: http://www.faruqilaw.com/CRR
CARBO Ceramics, CARBO Ceramics' Chief Executive Officer Gary Kolstad and CARBO Ceramics' Chief Financial Officer Ernesto Bautista are charged with violations of Section 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that defendants knew or recklessly failed to inform investors that (1) the Company was being negatively impacted by logistical issues such that it was unable to shift resources to liquid plays; (2) the Company was experiencing significant declines in proppant sales in the Haynesville region; and (3) as a result of the foregoing, Defendants' statements regarding the Company's operations and earnings were false and misleading and lacked a reasonable basis when made.
On January 26, 2012, CARBO Ceramics shocked the market by announcing lower than expected earnings caused by logistical issues and declining proppant sales. This news caused CARBO Ceramics stock to drop approximately 35% by the close of the business day, with the price of CARBO Ceramics options correspondingly affected.
Plaintiff now seeks to recover damages on behalf of himself and all other individual and institutional investors who bought or sold CARBO Ceramics options contracts between October 27, 2011 and January 26, 2012, excluding defendants and their affiliates, and were damaged thereby. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you purchased or sold CARBO Ceramics options contracts during the Class Period and were damaged thereby, you may, not later than June 11, 2012, move the court to serve as lead plaintiff of the class, if you so choose. In order to discuss this action, or if you have any questions concerning this notice or your rights or interests, please contact:
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