SAN DIEGO and RENO, Nev.,
April 10, 2014 /PRNewswire/
-- Shareholder rights law firm Robbins Arroyo LLP announces
that an investor of Allied Nevada Gold Corp. (NYSE: ANV) has filed
a federal securities fraud class action complaint in the U.S.
District Court for the District of Nevada. The complaint
alleges that the company and certain of its officers and directors
violated the Securities and Exchange Act of 1934 between
January 18, 2013 and August 5, 2013 (the "Class Period"). Allied
Nevada is engaged in the mining, development, and exploration of
properties in Nevada for the
production of unrefined gold and silver bars.
Allied Nevada Accused of Failing to Disclose Operating
Defects and Production Deficiencies
According to the complaint, in a two-day period, shares of
Allied Nevada fell $2.17 or more than
40%, to close at $3.73 per share on
August 7, 2013. The dramatic
drop in value followed an announcement by the company that its
production costs would increase substantially because of systemic
operating defects at its Lewis leach pad. According to the
complaint, Allied Nevada's adjusted cash costs per ounce of gold
increased 27% from the first quarter to the second quarter of
2013. Further, production deficiencies at the Lewis leach pad
impacted the company's operating cash flow, which resulted in the
company deciding to defer construction of its Hycroft Mine.
The decision to defer construction of the Hycroft Mine came
just weeks after the company sold $150.5
million shares in a secondary public offering, intended in
part to fund capital expenditures at the mine.
The complaint further alleges that Allied Nevada failed to
disclose to investors that the costs to remedy the Lewis leach pad
production deficiencies were reasonably likely to adversely impact
the company's future production, production costs, and cash flows.
As a result, Allied Nevada's statements regarding financial
performance were materially false and misleading throughout the
Class Period.
Allied Nevada Investors Are Encouraged to Contact
Shareholder Rights Law Firm Robbins Arroyo
If you invested in Allied Nevada and would like to discuss your
shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003,
DDonahue@robbinsarroyo.com, or via the information form on the
firm's shareholder rights blog:
www.robbinsarroyo.com/shareholders-rights-blog/allied-nevada-gold-corp/
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP