NUVERRA ENVIRONMENTAL SOLUTIONS SHAREHOLDER LAWSUIT
Nuverra Environmental Solutions Shareholder Lawsuit
This class action lawsuit addresses whether senior executives at Nuverra Environmental Solutions, Inc. (ticker symbol: NES) misrepresented and overstated the company’s financial performance to artificially inflate the price of the company’s common stock.
Specifically, the lawsuit alleges that Nuverra’s senior management failed to timely disclose to investors that the company was facing a severe liquidity crisis caused in part by a significant decline in Nuverra’s operational results in the Eagle Ford shale region.
Nuverra Shares Drop Following Disclosure of Serious Liquidity Problems
On July 30, 2013, Nuverra issued a press release informing investors that the company’s operational performance lagged far behind the expected earnings of the financial community. Furthermore, a week later, on August 8, the company issued another press release disclosing new facts about the company’s significant financial shortfall.
Upon publication of news of the Nuverra’s heavy losses, the company’s shares plummeted approximately 13 percent, according to financial analysts.
Morgan & Morgan’s securities fraud attorneys would like to hear from Nuverra shareholders who have suffered losses as a result of the company’s alleged misrepresentation of its financial health. To learn more or to see if you may qualify to join this developing class action, please fill out our no-cost, no-obligation case review form.
Nuverra Shareholder Lawsuit Raises Concerns of Questionable Conduct at the Company
Nuverra claims to be an “environmental solutions company.” Its primary business is providing oil and gas companies with fresh water to be used for hydraulic fracturing (commonly referred to as “fracking”). Fracking is a controversial drilling technique that involves injecting large amounts of water, which is mixed with sand and chemicals, into underground shale formations to release oil and natural gas. Nuverra also collects wastewater that has been pumped back up to the surface after it has been injected into fracking wells, so that the water can be treated and reused. Nuverra provides these services to fracking companies in several large shale regions throughout the United States, including the Eagle Ford shale area in South Texas and the Marcellus shale region in West Virginia and Pennsylvania.
News of the company’s deteriorating financial condition has caused shareholders to question the conduct of Nuverra’s senior management. Nuverra executives may have failed to inform the investment community in a timely manner that the company was facing serious liquidity problems. These claims are supported by the fact that senior executives made positive statements about the company’s cash position while the company was allegedly suffering from liquidity issues.
Nuverra Investors May Be Able to Participate in Class Action Lawsuit
Our securities attorneys encourage all Nuverra shareholders who suffered a loss and purchased Nuverra shares between August 6, 2012 and August 23, 2013 to contact us. (Please note that this proposed class period may change as the litigation moves forward.) In addition, current or former employees who have lost money in Nuverra stock purchased through a company-sponsored 401(k) plan should contact us to learn how our attorneys may be able to help you file a lawsuit for breach of fiduciary duty under the Employee Retirement Income Security Act (“ERISA”).
The securities fraud attorneys at Morgan & Morgan would like to hear from Nuverra shareholders. For more information about this developing class action and to learn more about your potential legal rights, please fill out our free case evaluation form today.