According to a press release dated January 26, 2012, the Company failed to disclose that: (a) it was allowing its customers to renew contracts on very short terms in order to sustain its utilization rates; (b) the lack of a lease renewal option on the Company's Norfolk, Virginia water treatment facility would require the Company to overpay for the purchase of the facility by $1.7 million in order to keep its oily water disposal business; and (c) the Company's debt situation was worse that reported so that a planned equity offering would be insufficient to protect the Company from breaching its financial covenants.
On January 28, 2010, before trading commenced, the Company revealed that it had incurred a $1.7 million charge in connection with overpaying for its water treatment facility due to lack of lease renewal options, the Company's vessel utilization was the lowest in a decade, and the Company’s dividend was suspended.
As a result of these revelations, the Company’s units plummeted $4.99 or 33.5%, to close at $9.89 on January 28, 2010, on exceptionally heavy trading volume over 23 times the daily average.
On May 9, 2012, the Court issued an Order appointing lead plaintiffs and approving their selection of lead counsel. On July 9, 2012, the plaintiffs filed their Amended Complaint.
One June 14, 2013, the Court issued an order granting the defendants’ motion to dismiss. Plaintiffs’ claims were
dismissed in part with prejudice and in part without prejudice. The Court also granted the director defendants' motion
to dismiss with prejudice the plaintiffs’ claims against them.