WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Allied Nevada Gold Corp. (“Allied Nevada” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the District of Nevada by another law firm on behalf of purchasers of the common stock of Allied Nevada Gold Corp. (NYSE: ANV) between January 18, 2013 and August 5, 2013, inclusive (the “Class Period”).
Allied Nevada recovers gold and silver from oxide ores at its sole operating property, the Hycroft Mine, which uses the heap leach process to extract gold and silver from ore. During the Class Period, the Company operated three leach pads: the Lewis leach pad; the Brimstone leach pad; and the North leach pad. The complaint alleges that Allied Nevada and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) the Company’s Lewis leach pad was beset with undisclosed operating defects and production deficiencies which were having a materially adverse effect on both current and future production costs and operating cash flows; (2) the Company’s operations were not generating the cash flow necessary to proceed with the construction of the Hycroft Mine mill; (3) while Allied Nevada's newly installed carbon columns increased its solution processing capacity, silver recovery from that process was approximately one-third of the Company's historical recovery rate; (4) the Company’s disclosure controls, and the certifications regarding those disclosure controls, were materially false and misleading; and (5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Allied Nevada’s leach pad solutions processing capacity, the Hycroft Mine mill expansion, and the Company's expected gold and silver production and its expected operating income and cash flows.
On August 6, 2013, Allied Nevada announced weaker-than-expected second quarter earnings, first half production and sales, along with higher-than-expected costs, and a reduction of its 2013 production and sales guidance. It also announced that it was deferring construction of its Hycroft mill, primarily due to the inability of the Company’s operations to generate adequate cash flow. According to the complaint, all of the foregoing were attributable in whole or in part to the poor performance at the Company’s Lewis leach pad.
Cohen Milstein encourages all investors who purchased Allied Nevada’s common stock between January 18, 2013 and August 5, 2013, or former employees with information concerning this matter to contact the firm.
If you are an Allied Nevada shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than June 2, 2014 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.
The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over one billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: email@example.com; firstname.lastname@example.org