Goldman Scarlato Karon & Penny, P.C. Announces Investigation of Allied Nevada Gold Corp.
April 08 2014 - 6:18PM
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
scarlato@gskplaw.com 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.
To learn more about the Firm, you may
visit www.gskplaw.com.
Goldman Scarlato Karon & Penny, P.C.Paul Scarlato,
484-580-8740