NEW YORK, May 13, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP announces the filing of a class action lawsuit against Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (NYSE MKT:ANV) and certain of its officers. The class action, filed in United States District Court, District of Nevada, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Allied Nevada between January 18, 2013 and August 5, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Allied Nevada securities during the Class Period, you have until June 2, 2014, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Allied Nevada is a U.S. based gold producer focused on mining, developing, and exploring properties in the state of Nevada. Allied Nevada's operating property, the Hycroft Mine, and its advanced exploration and other exploration properties are all located in the state of Nevada.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, Defendants misled investors regarding the dramatic operating difficulties burdening the Company's mining operations and therefore 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.
In August 2013, the Company shocked the market when they revealed that the Company's production costs had soared, and would continue to do so, because of systemic operating defects at the Lewis leach pad. Defendants explained that the Company 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, as well as obtain various regulatory approvals to undertake these corrective actions. And, on August 6, 2013, the Company announced in a Securities and Exchange Commission (SEC) regulatory filing that, as a result of continuing weak cash flow from operations, the Company would defer the construction of the mill at Hycroft until completing of a revised feasibility study.
On this news, shares of Allied Nevada fell $2.17 to $3.73, or more than 36.78%, on unusually heavy trading volume, on August 5, 2013 to August 7, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
