Pomerantz LLP is investigating claims on behalf of investors of Mammoth Energy Services, Inc. (“Mammoth” or the “Company”).
The investigation concerns whether Mammoth and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 24, 2019, the Wall Street Journal published an article entitled “FEMA Official Probed Over Puerto Rico Power Restoration”. According to the article, a high-ranking Federal Emergency Management Agency official who oversaw the reconstruction of Puerto Rico’s electrical grid after Hurricane Maria is under investigation for allegedly steering work to one of Mammoth’s subsidiaries. The subsidiary had signed separate contracts worth up to $900 million and $945 million to repair downed transmission and distribution lines in Puerto Rico.
Following publication of the article, Mammoth’s stock price fell $0.50 per share, or roughly 4%, to close at $11.74 per share on May 24, 2019.