NEW YORK, April 4, 2014 /PRNewswire/ -- Milberg LLP announces that a class action lawsuit has been filed in the United States District Court for the District of Nevada on behalf of purchasers of Allied Nevada Gold Corp. ("Allied Nevada" or the "Company) (NYSE MKT:ANV) common stock during the period between January 15, 2013 and August 5, 2014 (the "Class Period").
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public.
Specifically, the complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's financial performance and future prospects and failed to disclose adverse facts, including: (a) that one of its three impermeable leach pads, the Lewis leach pad, was beset with undisclosed operating defects and production deficiencies, including, but not limited to, an insufficient supply of fresh water to leach ore and an inadequate solution pumping and piping infrastructure; (b) that in order to remediate the operating defects and production deficiencies at the Lewis leach pad, the Company would need to double the amount of fresh water available at the facility, replace the existing irrigation tubing, piping and pumping infrastructure and seek various regulatory approvals; (c) that the recurring operating defects and production deficiencies at the Lewis leach pad were having a materially adverse effect on the Company's production costs and operating cash flows; (d) that the Company's operations were not generating the cash flow necessary to proceed with the construction of the Hycroft Mine mill; (e) that the costs to remediate the operating defects and production deficiencies at the Lewis leach pad were reasonably likely to have a material adverse effect on the Company's future production, production costs and cash flows; (f) that, 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; (g) that the Company's disclosure controls, and the certifications regarding those disclosure controls, were materially false and misleading; and (h) that, 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.
Additionally, the complaint alleges that in August 2013, defendants 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. In response to these revelations, the price of Allied Nevada common stock plummeted over a two day period from $5.90 per share at the close of trading on August 5, 2013 to $3.73 per share on August 7, 2013, representing a drop of more than 40%.
If you purchased Allied Nevada shares during the Class Period you may, no later than June 2, 2014, request that the Court appoint you lead plaintiff. A lead plaintiff is a class member that directs the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaint in this action was not filed by Milberg.
If you would like to learn more about this potential matter, please contact the following attorney:
SOURCE Milberg LLP