Covia Holdings Corp Ordered to Pay Civil Penalty by SEC | Goodman & Nekvasil P.A. May Recover Investor Losses
On December 8, 2020, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against Covia Holdings Corp. (“Covia”) and Fairmount Santrol Holdings, Inc. now known as Bison Merger Sub I, LLC (“Fairmount”) (collectively, the “Respondents”) for violations arising from materially false and misleading statements relating to the performance and commercial potential of high-margin proppant products the Respondents were developing and selling. According to the Order, the Respondents’ materially false and misleading statements about these products appeared in offering documents in connection with its 2014 initial public offering and two subsequent offerings in 2016; in annual, quarterly, and current reports filed with the Commission; in presentations to investors and analysts; and on the company’s website. At the end of June 2020, Covia, and its U.S. subsidiaries, including Fairmount, filed voluntary petitions for Chapter 11 bankruptcy reorganization.
The Commission ordered the Respondents to pay, jointly and severally, a $17 million civil penalty, which shall be deemed satisfied by a cash payment from Covia in the amount of $1 million pursuant to Covia Holdings Corporation and its Debtor Affiliates’ confirmed Chapter 11 plan or an order of the bankruptcy court allowing such claim and authorizing such payment. A Fair Fund has been established, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected can be distributed to investors harmed by the Respondents’ conduct described in the Order. See the Commission’s Order: Release No. 33-10897.
Investors in Covia Holdings Corp May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in Covia Holdings Corp, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a St. Petersburg, FL law firm with a national practice representing victimized investors, has recovered more than $200 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in Covia Holdings Corp and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.