PITTSBURGH, March 16, 2012 /PRNewswire/ -- Notice is hereby given by the Law Office of Alfred G. Yates Jr., PC that it has filed a class action in the United States District Court for the Northern District of Alabama on behalf of purchasers of the common stock of Walter Energy, Inc. ("Walter" or the "Company") (NYSE: WLT ‑ News) between April 20, 2011 and September 21, 2011, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Alfred G. Yates Jr., Esquire at 1‑800‑391‑5164, toll free, or at [email protected] by e‑mail. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to serve as lead plaintiff, you must move the Court no later than March 26, 2012.
The complaint charges Walter and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Walter, through its consolidated subsidiaries, mines and exports hard coking coal for the global steel industry.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing so‑called "squeeze" events in Alabama and lower coal transportation rates in Canada that significantly reduced Walter's coal production; (ii) that the Company's commitment to ship more than 700,000 tons of coal in the second quarter at first quarter sales prices would result in a material adverse effect on Walter's average sales prices and operating results during the second quarter; (iii) that Walter was experiencing a significant decline in its margins and profitability; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its business prospects during the Class Period.
On August 3, 2011, Walter issued a press release announcing its operating results for its 2011 fiscal second quarter, the period ended June 30, 2011. For the quarter, the Company announced net income of $107.4 million, or $1.71 per diluted common share, significantly less than Wall Street estimates. Then, On September 21, 2011, Walter issued a press release announcing its attempt to "enhance" its historical statistical disclosure and its revisions to its 2011 second half sales expectations. In response to this announcement, the price of Walter common stock declined from $75.00 per share on September 20, 2011 to $66.25 on September 21, 2011, on extremely heavy trading volume.
Alfred G. Yates, Jr.
(412) 391-5164 or Toll Free: 1(800) 391-5164
email: [email protected]
SOURCE Law Office of Alfred G. Yates Jr., PC