BALA CYNWYD, Pa., June 3, 2002 (PRIMEZONE) -- Shareholders of Stillwater Mining Company ("Stillwater" or the "Company") (NYSE:SWC) who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in New York must submit an application with the Court by June 10, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Stillwater Mining Company securities between April 20, 2001 and April 1, 2002(the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Stillwater Mining Company and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Montana-based Stillwater Mining Company, among other things: (i) SWC improperly classified "mineralized material" as "probable reserves"; (ii) defendants' improper manipulation of probable reserves overstated Stillwater's class period net income because defendants depreciated Stillwater's plant and equipment costs according of the life of these reserves. If defendants had properly accounted for these reserves, depreciation would have occurred much faster; and (iii) the reduction in probable reserves will likely result in an impairment charge, or a restatement of at least fiscal year 2001 results. Furthermore, defendants failed to disclose that the SEC had advised Stillwater by mid-December 2001/ early January 2002 that its methodology for the calculation of probable ore reserves was improper and would have to be changed.
On April 2, 2002, when defendants belatedly disclosed that the Company's accounting practices had been condemned by the SEC, the stock dropped by 24% in one day on extraordinarily high volumes of 4,743,600 shares traded, vastly greater than the Company's average trading volume of approximately 400,000 shares per day. The full extent of Stillwater's losses is still unknown to the market, since the revision to reserves could adversely impact 2001 net income, and result in a downward financial restatement of prior quarters.
If you purchased Stillwater Mining Company securities between April 20, 2001 and April 1, 2002, you may be a member of the class and have until June 10, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca