NEW YORK, May 13, 2016 /PRNewswire/ -- On May 12, 2016, District Court Judge Beverly Reid O'Connell of the United States District Court for the Central District of California appointed Faruqi & Faruqi, LLP to serve as Lead Counsel in Loftus v. Primero Mining Corp., Case No. 16-01034-BRO (RAOx).
The action alleges that Primero Mining Corp. ("Primero" or the "Company") (NYSE: PPP) made materially false and misleading statements regarding the tax compliance of the Company's Mexican subsidiary, Primero Empresa Minera, S.A. de C.V ("PEM").
Specifically, the action focuses on whether the Company failed to disclose that PEM had inappropriately recorded revenues and taxes from sales under its silver purchase agreement with Silver Wheaton Corp. in connection with the Advance Pricing Agreement ("APA") filed with the Mexican tax authorities in 2011.
On February 3, 2016, Primero issued a press release announcing that the Mexican tax authorities filed a legal claim which sought to nullify the APA. On this news, Primero's shares fell $0.74 per share, or 28%, to close at $1.89 per share on February 4, 2016.
Faruqi & Faruqi, LLP encourages anyone with information regarding Primero's conduct, including whistleblowers, former employees, shareholders and others, to contact Richard Gonnello at email@example.com or (212) 983-9330.
If you invested in Primero common stock or options between October 5, 2012 and February 3, 2016 and would like to discuss your legal rights, please contact Richard Gonnello at firstname.lastname@example.org or (212) 983-9330.
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SOURCE Faruqi & Faruqi, LLP