Newman Ferrara LLP Announces Securities Class Action Against Allied Nevada Gold Corp. and Advises of Lead Plaintiff Deadline
24 April 2014 - 4:33AM
Business Wire
Newman Ferrara LLP announces that a class action lawsuit has
been filed in the Unites States District Court for the District of
Nevada on behalf of all purchasers of the common stock of Allied
Nevada Gold Corp. (“Allied Nevada” or the “Company”) (NYSE MKT:ANV)
between January 18, 2013, and August 5, 2013, inclusive (the “Class
Period”).
Allied Nevada, a company focused on gold and silver mining and
exploration, maintains its operations at the Hycroft gold mine
Nevada. Allied Nevada employs a chemical “heap leaching” process to
extract gold and silver from ores at its three leach pads; the
Lewis, Brimstone, and North leach pads. The Complaint alleges that
defendants issued materially false and misleading statements during
the Class Period concerning the Company’s operations and financial
prospects, including statements concerning expansion of the Hycroft
mine, serious operational defects and problems at the Lewis leach
pad, and soaring costs associated with remediation of the Lewis
leach pad.
In August 2013, when the Allied Nevada finally disclosed these
issues in addition to weak cash flow from operations, and the fact
that the Company was suspending indefinitely construction of the
mill at the Hycroft mine, the price of Allied Nevada shares dropped
from $5.90 per share on August 5, 2013, to a closing price of $3.73
per share on August 7, 2013, on heavy trading volume. Making
matters worse, in the weeks before the adverse revelations, the
Company sold $150.5 million shares in a secondary public
offering.
Investors who purchased Allied Nevada stock during the Class
Period may contact Newman Ferrara partner Jeffrey M. Norton
(jnorton@nfllp.com) by email or call (212) 619-5400 to discuss this
lawsuit or the Lead Plaintiff process.
Whistleblowers: Persons with knowledge that may aid in
the investigation of this matter are encouraged to contact the
firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers
are protected from employer retaliation and may be entitled to as
much as 30 percent of the recovery if the information provided
leads to a successful action.
Newman Ferrara maintains a multifaceted practice based in New
York City with attorneys specializing in complex commercial and
multi-party litigation, securities fraud and shareholder
litigation, consumer protection, civil rights, and real estate. For
more information, please visit the firm website at
www.nfllp.com.
Newman Ferrara LLPJeffrey M. Norton, 212-619-5400