Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating
whether certain officers or directors of Allied Nevada Gold Corp. (NYSE:
ANV) violated state or federal laws in connection with statements
regarding Allied Nevada Gold’s business, operations and financial
prospects. Allied Nevada is a gold producer, engaged in the mining,
development and exploration of properties in Nevada.
In August 2013, Allied Nevada reported that the Company’s production
costs had soared, and would continue to do so, because of systemic
operating defects at the Lewis leach pad. The Company stated that it
would have to double the amount of fresh water available at the
Lewis leach pad and replace the existing irrigation tubing, piping and
pumping infrastructure to remedy its defects and production
deficiencies. In addition, these corrective actions would require
various regulatory approvals.
Furthermore, Allied Nevada stated it would indefinitely suspend its
planned expansion at the Hycroft mine due to the Company’s inability to
generate sufficient cash flows from operations, which was the result of
amassed ore going unprocessed on the defective Lewis leach pad.
On this news, the price of Allied Nevada common stock plummeted more
than 40% on very heavy volume over a two day period, or $2.17 per
share, from $5.90 per share at the close of trading on August 5, 2013 to
$3.73 per share on August 7, 2013. Just weeks prior to these adverse
revelations, the Company sold $150.5 million common shares in a
secondary public offering.
This investigation will determine whether shareholders were harmed by
misleading public statements concerning Allied Nevada’s financial
performance and prospects.
If you are an Allied Nevada shareholder and are interested in learning
more about the investigation or your legal rights and remedies, please
contact Jim Baker (jimb@johnsonandweaver.com)
at 619-814-4471. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law
firm with offices in California and New York. The firm represents
individual and institutional investors in shareholder derivative and
securities class action lawsuits. For more information about the firm
and its attorneys, please visit http://www.johnsonandweaver.com.
Attorney advertising. Past results do not guarantee future outcomes.
Copyright Business Wire 2014