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CVIA.US

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

N.D. Ohio
Court
1:20-cv-2744
Case number
10 Mar 2016
Class period Start
29 Jun 2020
Class period End
11 Mar 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.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.052
Filing date
10 December 2020
Lead Plaintiff Deadline
23 July 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
11 April 2024
Exclusion deadline
20 March 2024
Objection deadline
20 March 2024
Hearing deadline
11 April 2024
Trades matching type
FIFO
+$6,000,000
Total Settlement Amount
Created by Polina Foster, Scout

Covia Holdings Corporation

Covia Holdings Corporation provides diversified mineral-based and material solutions for the industrial and energy markets in the United States, Argentina, Mexico, Canada, China, and Denmark. The c...

    Ticker
    CVIA.US
    ISIN
    US22305A1034
    CIK
    1722287
    Sector
    Energy
    Industry
    Oil & Gas Equipment & Services
    Country
    USA
    Address
    3 Summit Park Drive, Independence, OH, United States, 44131