AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Shareholder Alert: Robbins LLP Reminds Investors Mammoth Energy Services, Inc. (TUSK) Sued for Misleading Shareholders

November 6, 2019

SAN DIEGO & OKLAHOMA CITY--(BUSINESS WIRE)--Nov 6, 2019--

Shareholder rights law firm Robbins LLP announces that a purchaser of Mammoth Energy Services, Inc. (NASDAQ: TUSK) filed a derivative complaint against the Company’s directors for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and alleged violations of federal securities laws. Mammoth Energy Services operates as an oilfield service company.

If you suffered a loss as a result of Mammoth’s misconduct, click here.

Mammoth Energy Services, Inc. (TUSK) Subsidiary’s Contracts Are Being Investigated

According to the complaint, Mammoth’s officers and directors caused the Company to file false financial information with the SEC regarding its anticipated $1.8 billion contract between its subsidiary Cobra Acquisitions LLC and Puerto Rico Electric Power Authority (“PREPA”) for repairs to PREPA’s electrical grid after Hurricane Maria. Mammoth’s officers and directors had failed to disclose that the agreement was tainted by improper dealings, but in May 2019, The Wall Street Journal revealed that the Department of Homeland Security was investigating FEMA then Deputy Regional Administrator, who was placed on administrative leave, over allegations that she steered work to Cobra. On this news, Mammoth’s shares fell over 10% over the next three trading days. Then, in June 2019, The Wall Street Journal published another article reporting that the FBI had opened a related criminal inquiry into the origin of Cobra’s contracts with PREPA. On this news, Mammoth’s shares fell over 45% over the next two trading days to close at $6.11 per share on June 6, 2019. Then, on September 3, 2019, FEMA’s former Deputy Regional Administrator, Cobra’s former president, and a second FEMA employee who later worked for Cobra, were indicted and arrested for conspiring to defraud the federal government in connection to the contracts with PREPA. Mammoth’s stock has yet to recover and currently trades at around $2. Additionally, the Company is the subject of a federal securities class action, which can cause Mammoth additional harm.

Mammoth Energy Services, Inc. (TUSK) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
lkandinov@robbinsllp.com
Shareholder Information Form

Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191106005802/en/

CONTACT: Leo Kandinov

Robbins LLP

5040 Shoreham Place

San Diego, CA 92122

lkandinov@robbinsllp.com

(619) 525-3990 or Toll Free (800) 350-6003

www.robbinsllp.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Robbins LLP

Copyright Business Wire 2019.

PUB: 11/06/2019 12:39 PM/DISC: 11/06/2019 12:39 PM

http://www.businesswire.com/news/home/20191106005802/en