Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Allied Nevada Gold Corp.
April 14 2014 - 10:17AM
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 stoll@cohenmilstein.com. 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.Jordan HillCohen Milstein Sellers & Toll
PLLC1100 New York Avenue, N.W.West Tower, Suite 500Washington, D.C.
20005Telephone: (888) 240-0775 or (202) 408-4600Email:
stoll@cohenmilstein.com; jhill@cohenmilstein.com
Attorney Advertising
Cohen Milstein Sellers & Toll PLLCSteven J. Toll,
Esq.888-240-0775 or 202-408-4600stoll@cohenmilstein.comorJordan
Hill888-240-0775 or 202-408-4600jhill@cohenmilstein.com