Covia Holdings Corporation (NYSE: CVIA)
According to the Complaint, Covia purports to be in the business of minerals and materials solutions for the industrial and energy markets, including producing proprietary sand for use in fracking.
Covia shares traded on the New York Stock Exchange under the ticker symbol “CVIA.” On June 30, 2020, NYSE delisted Covia stocks, and now the Company’s shares trade over-the-counter (“OTC”) under the ticker symbol “CVIAQ.” Prior to a merger with Unimin Corporation (“Unimin”) on or about June 2018, shares of Fairmount Santrol traded on the NYSE under the ticker symbol “FMSA.” On or about June 1, 2018, Fairmount Santrol and Unimin entered a strategic combination, whereupon Fairmount Santrol shareholders received approximately $0.73 in cash consideration and .2 shares of Covia for each held share of Fairmount Santrol. Any remaining Fairmount Santrol shares that couldn’t be converted into a whole Covia share were redeemed for cash.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Covia’s proprietary “value-added” proppants were not necessarily more effective than ordinary sand; (2) Covia’s revenues, which were dependent on its proprietary “value-added” proppants, was based on misrepresentations; (3) when Covia insiders raised this issue, Defendants did not take meaningful steps to rectify the issue; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.