WAYNE, Pa.--(BUSINESS WIRE)--Goldman Scarlato Karon & Penny, P.C. (the “Firm”) has begun an investigation into Allied Nevada Gold Corp. (NYSE MKT: ANV) to determine whether Allied Nevada violated federal securities laws by misrepresenting the state of its operations and improperly concealing that certain equipment crucial to the its mining efforts suffered from serious, ongoing defects and deficiencies between January 18, 2013 and August 5, 2013, inclusive.
On April 30, 2013, Allied Nevada announced disappointing results for the first quarter of 2013, attributing the miss to inclement weather and rising input costs. It also revealed that previously announced plans to expand operations at its sole operating property, the Hycroft Mine in Nevada, would be revised to take effect in phases. In addition, it announced that it would sell 14 million shares of common stock to investors through a secondary public offering to fund capital expenditures at the Hycroft Mine and for other corporate purposes.
Then, on August 6, 2013, Allied Nevada announced that it would defer construction at the Hycroft Mine expansion project due to operating defects in the infrastructure, which would require costly remedies. Allied Nevada attributed the decision to halt the project to the discovery in May and June 2013 of poor operational decisions made in late 2012 and early 2013.
Allied Nevada’s stock price fell sharply in connection with each of these revelations, causing shareholders to incur significant losses.
What You May Do
If you have information that would assist the Firm in its investigation or would like to discuss your legal rights, you may, without obligation or cost to you, contact the Firm by email at firstname.lastname@example.org or by telephone at (484) 580-8740. The Firm encourages anyone with information regarding Allied Nevada’s conduct during the period in question to contact the Firm, including whistleblowers, former employees, shareholders, and others.
About Goldman Scarlato Karon & Penny, P.C.
The Firm prosecutes securities fraud, consumer fraud, price-fixing, ERISA class actions, and shareholder-derivative actions throughout the U.S. The Firm’s lawyers have recovered hundreds of millions of dollars on behalf of consumers, investors, and businesses.
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