PR Newswire | Dec 11, 2020 05:29PM EST

Holdings Corporation

12/11 16:29 CST

Investor Alert: Kaplan Fox Investigates Potential Securities Fraud At Covia Holdings Corporation NEW YORK, Dec. 11, 2020

NEW YORK, Dec. 11, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Covia Holdings Corporation ("Covia" or the "Company") (OTC: CVIAQ). A complaint has been filed on behalf of investors who purchased the Company's securities between March 15, 2016 and June 29, 2020, inclusive (the "Class Period").

On May 9, 2019, after the market closed, the Company disclosed in a Form 10-Q quarterly report that on March 18, 2019, Covia received a subpoena from the SEC seeking information relating to certain value-added proppants marketed and sold by Fairmount Santrol or Covia within the Energy segment since January 1, 2014. Following this news, Covia's shares fell $0.29 per share, about 7.7%, to close at $3.47 per share on May 10, 2020.

At the end of the Class Period, Covia filed a voluntary petition for Chapter 11 bankruptcy after which the Company's shares fell by over 91% to close at $0.04 per share on July 1, 2020.

The complaint alleges that the Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's proprietary 'value-added' proppants were not necessarily more effective than ordinary sand; (2) the Company's revenues, which were dependent on its proprietary 'value-added' proppants, was based on misrepresentations; (3) when Company insiders raised this issue, the 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.

If you are a member of the proposed Class, you may move the court no later thanFebruary 8, 2021 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing jcampisi@kaplanfox.com or by calling 212-329-8571.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, your rights, or your interests, please contact:

Jeffrey P. CampisiKAPLAN FOX & KILSHEIMER LLP850 Third Avenue, 14th FloorNew York, New York 10022212-329-8571E-mail: jcampisi@kaplanfox.com

Laurence D. KingKAPLAN FOX & KILSHEIMER LLP1999 Harrison Street, Suite 1560Oakland, California 94612(415) 772-4704Fax: (415) 772-4707E-mail: lking@kaplanfox.com

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SOURCE Kaplan Fox & Kilsheimer LLP