Mammoth Energy Services, Inc.
| Company Name | Mammoth Energy Services, Inc. |
| Stock Symbol | TUSK |
| Class Period | October 19, 2017 to June 05, 2019 |
| Lead Plaintiff Motion Deadline | August 06, 2019 |
On May 24, 2019, the Wall Street Journal reported that a FEMA official involved in the reconstruction of Puerto Rico following Hurricane Maria is under investigation for directing electrical grid work contracts to a Mammoth Energy subsidiary, worth up to $900 million and $945 million each.
On this news, the Company’s share price fell $0.50 per share, or over 4%, to close at $11.74 on May 24, 2019, thereby injuring investors.
Then, on June 5, 2019, the Wall Street Journal reported that a Mammoth Energy subsidiary was under investigation by the Federal Bureau of Investigation and the Department of Homeland Security “examining how the [Company] came to dominate the power restoration efforts” in Puerto Rico.
On this news, the Company’s share price fell $5.09 per share, or over 45%, over two trading sessions to close at $6.11 on June 6, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) Mammoth’s subsidiary, Cobra, improperly obtained two infrastructure contracts with the Puerto Rico Electric Power Authority that totaled over $1.8 billion; (2) specifically, the contracts were awarded as the result of improper steering and not a competitive Request for Proposal process; and (3) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
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