CARBO Ceramics Investors are encouraged to contact Gilman Law before the April 9, 2012 Deadline to participate in the CARBO Ceramics Securities Fraud Lawsuit.
The Naples Florida office of the national securities law firm Gilman Law LLP is investigating claims in the CARBO Ceramics Securities Fraud Lawsuit. The lawsuit alleges violations of securities laws by CARBO Ceramics, Inc. (“CARBO”) and its officers or directors. Specifically, the suit alleges that CARBO and its officers or directors issued materially false and misleading statements to investors, thereby violating the Securities Exchange Act of 1934.
CARBO Ceramics Securities Fraud Lawsuit Details
CARBO Ceramics supplies and manufactures ceramic proppants primarily used in the hydraulic fracturing of natural gas and oil wells. The complaint alleges that between October 27, 2011 and January 26, 2012 (the “Class Period”), defendants issued materially false and misleading statement regarding the Company’s business and prospects. Specifically, it is alleged that defendants misrepresented and/or failed to disclose the following adverse facts: (a) that the Company was experiencing a dramatic decline in proppant sales in the Haynesville region; (b) that the Company was being negatively impacted by logistical problems such that it was not able to shift resources to liquid plays where drilling activity was increasing; and (c) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its operations and earnings during the Class Period.
On January 26, 2012, Carbo Ceramics issued a press release announcing its financial results for the fourth quarter and fiscal year 2011, ending December 31, 2011. That same day, the Company held a conference call for investors wherein it was revealed that the Company had seen a 70% decline in proppant sales in the Haynesville region and that it had been unable to shift resources to various liquid plays due to logistical issues. In response to the Company’s announcements, the price of Carbo Ceramics common stock fell from $130.72 per share to $103.76 on heavy trading volume.
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The securities law attorneys of Gilman Law have more than 32 years of experience in securities law and have been involved in all major aspects of securities litigation. Gilman Law focuses on cases involving stock manipulation, securities fraud, investments fraud, shareholder rights violations, and securities arbitration.