ChampionX Faces Class Action Lawsuit Over Stock Repurchases
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
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Source: PRnewswire
- Lawsuit Background: Berger Montague PC has filed a class action lawsuit against ChampionX on behalf of investors who sold shares between February 29 and April 1, 2024, alleging stock repurchases while in possession of material non-public information, impacting investor rights.
- Concealed Acquisition Offers: ChampionX received an unsolicited acquisition offer from SLB at $36.70 per share on February 29, 2024, which was raised to $37.80 on March 7, while the average stock price during this period was only $33.32, highlighting the severity of the company's information concealment.
- Impact of Buybacks: Despite the obligation to disclose acquisition offers, ChampionX continued to repurchase shares at artificially depressed prices, profiting from this concealment and potentially exposing itself to legal liabilities for investor losses.
- Acquisition Completion: ChampionX disclosed an agreement with SLB on April 2, 2024, and the merger was completed on July 16, 2025, at $40.58 per share, illustrating the operational risks associated with asymmetric information in corporate actions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
