Investor Alert: Kaplan Fox Announces Investigation Of FTS International, Inc.
NEW YORK, March 4, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of FTS International, Inc. ("FTS" or the "Company") (NYSE: FTSI), purportedly one of the largest providers of hydraulic fracturing services in North America. A complaint has been filed against the Company, certain officers and directors, and the underwriters of the Company's February 2018 initial public offering ("IPO") alleging that the Registration Statement and other offering documents for the IPO were materially false and misleading.
Pursuant to the IPO, FTS sold 22.4 million shares of common stock at $18 per share for gross proceeds of over $403 million.
According to the complaint, "the Company had temporarily inflated its total revenues leading up to the IPO by increasing revenues for services rendered to Chesapeake and other related parties by more than 3,650% as compared to 2016 and creating the false impression that this revenue increase was the result of a new commercial arrangement, thereby implying a long-term trend." Specifically, the Registration Statement represented that the Company was experiencing a "surge" in demand for its services due to recent increases in the prices of oil and natural gas.
According to the complaint and unknown to investors, at the time of the IPO FTS was facing several adverse trends, including that a glut of hydraulic fracturing companies had re-entered the market following the rise in oil and natural gas prices placing intense downward pressure on the price of the Company's services.
Since the IPO, the price of FTS's stock has substantially declined. By February 13, 2019, the price of FTS shares closed at $9.29 per share, nearly 50% below the IPO price of $18 per share.
If you are an investor and would like to discuss our investigation or the action, please contact us by emailing [email protected] or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: [email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
(415) 772-4700b
Fax: (415) 772-4707
E-mail: [email protected]
SOURCE Kaplan Fox & Kilsheimer LLP
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