Tetra Technologies Agrees to Settlement In Shareholder Class Action
July 2010 - If you purchased the publicly traded common stock of Tetra Technologies, Inc. (“Tetra”) between May 3, 2006 and October 16, 2007, inclusive (“class period”), you could get a payment from a class action settlement.
A settlement has been proposed that will resolve a lawsuit concerning whether during the Class Period, Defendants knowingly and/or recklessly disseminated materially false and misleading statements or made material omissions concerning the business operations and financial condition of TETRA. The Settlement will provide a Settlement Fund of $8.25 million in cash (the “Settlement Fund”) to pay claims of investors who suffered alleged damages from transactions of TETRA publicly traded common stock between May 3, 2006 and October 16, 2007, inclusive.
March 2008 - According to a press release dated March 28, 2008 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.