Investor Alert: Kaplan Fox Announces Investigation Of CVR Refining

NEW YORK, April 15, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of CVR Refining, LP ("CVR Refining" or the "Company") CVRR.  A securities class action has been brought on behalf of all former owners of CVR Refining common units who sold their units, and were damaged thereby, during the period July 30, 2018 through January 28, 2019, inclusive (the "Class Period"). 

On July 30, 2018, CVR Refining announced that the General Partner, CVR Energy, and other affiliates now owned 84.5 percent of the outstanding CVR Refining common units, and could exercise the buyout provision in CVR Refining's partnership agreement (the "Call Right").  Under the Call Right, the General Partner had the right to acquire all remaining CVR Refining units for a specified price.  According to the action, the predetermined price per unit under the Call Right was the greater of: (i) the average closing price of the units during the 20 trading days predating three days before the notice of intent to effect the buyout; or (ii) the highest per-unit price paid by the General Partner or any of its affiliates for CVR Refining units during the 90-day period preceding the date of the notice of intent to effect the buyout. 

On August 1, 2018, the Company stated that there were "no current plans to exercise the call right." 

According to the action, on October 24, 2018, CVR Refining released its third quarter 2018 financial results, which results were up substantially from the year prior. 

According to the action, on November 29, 2018, the General Partner announced that it was now "considering" exercising the Call Right, and that neither it, nor any of its affiliates, had purchased CVR Refining units in the 90-day period predating the announcement, further driving down the CVR Refining unit price.

Then, on January 17, 2019, CVR Refining issued a press release announcing that the General Partner had assigned the Call Right to CVR Energy, and that CVR Energy would exercise the Call Right on January 29, 2019, "for a cash purchase price of $10.50 per Common Unit," which price was based on the 20-day trading average of CVR Refining units ending on January 14, 2019.

According to the action, an affiliate of the General Partner had, in fact, purchased CVR Refining units on November 14, 2018 at $16.71 per unit – well within 90 days of CVR Energy's notice of intent to exercise the Call Right.

If you are a member of the proposed Class, you may move the court no later than June 5, 2020 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 pmayer@kaplanfox.com or by calling 646-315-9003.

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:

Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: dhall@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com

SOURCE Kaplan Fox & Kilsheimer LLP