A class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of purchasers of TETRA Technologies Inc. common stock during the period between January 3, 2007 and October 16, 2007 (the “Class Period”). The complaint charges TETRA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company operates as an oil and gas services company worldwide. It manufactures integrated calcium chloride and brominated products, and supplies feedstocks to energy and other markets.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements and failed to disclose the following adverse facts which were known to defendants or recklessly disregarded by them: (i) that the Company’s Well Abandonment and Decommissioning (“WA&D”) division was not performing according to internal expectations; (ii) that the Company failed to timely take a charge for insurance receivables which remain uncollected; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On August 3, 2007, the Company announced its financial results for the second quarter of 2007 and reduced its full year 2007 earnings guidance because of, among other things, poor profits at its WA&D services. Shares of TETRA stock fell 25% following this announcement. Then, on October 16, 2007, TETRA issued a press release announcing that it was withdrawing its previously estimated full year 2007 earnings guidance because of, among other things, the Company’s concern that it would have to take a charge to earnings for substantial uncollected insurance receivables. In response to this announcement, the price of TETRA common stock fell an additional $1.76 per share, or approximately 8%, to close at $19.86 per share, on heavy trading volume.
If you are a current shareholder or purchased shares during the period of January 3, 2007 and October 16, 2007 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.