This is a securities fraud class ction lawsuit against TETRA Technologies Inc. and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
TETRA 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 class action complaint alleges that, during the Class Period, TETRA 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 TETRA's Well Abandonment and Decommissioning ("WA&D") division was not performing according to internal expectations;
(ii) that TETRA 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 TETRA and its prospects.
On August 3, 2007, TETRA 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, TETRA'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.
Name (Stock Symbol)
TETRA Technologies Inc. (TTI)
TETRA Technologies, Inc., together with its subsidiaries, operates as an oil and gas services and production company.
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