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CVIA.US
id: 890

Covia (CVIA) and Fairmount (FMSA) $6M Proppants Case Settlement

$6,000,000
Cash Settlement
N.D. Ohio
Court
1:20-cv-2744
Case number
03/10/2016
Class period Start
06/29/2020
Class period End
03/11/2024
Claim deadline

  • Covia faced trouble in March 2019, when the SEC started investigating certain proppants.

  • By June 2020, Covia filed for bankruptcy, leading to a 37.5% $CVIA drop.

  • Covia agreed to pay $6M to investors to resolve the claims about hiding info about the proppants and their effectiveness.

In March 2019, Covia revealed it got a subpoena from the SEC related to certain proppants sold since 2014.

After that, in November 2019, Covia disclosed the SEC's request for more info, causing another $CVIA 4.3% drop.

By June 2020, Covia filed for Chapter 11 bankruptcy, leading to $CVIA 37.5% fall.

Thus, Covia was accused of misleading investors about the effectiveness of its proppants, revenue dependence, and failure to address issues raised by insiders.

Covia has now decided to end these allegations and pay a $6M settlement.

Case Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.052
Filing date
12/10/2020
Lead Plaintiff Deadline
07/23/2021
Plaintiffs
William Plagens
Attorneys
Glancy Prongay & Murray LLP
Defendants
Jenniffer Deckard, Mark Barrus, Michael Biehl, Andrew Eich, Richard Navarre
Judge
Hon. Aaron Polster
Administrator
Strategic Claims Services
Settlement agreement date
2023-10-25
Court hearing date
04/11/2024
Exclusion deadline
03/20/2024
Objection deadline
03/20/2024
Hearing deadline
04/11/2024
Trades matching type
FIFO
Disbursement date
03/12/2025