NEW YORK, April 4, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of Nevada, on behalf of all persons who purchased or otherwise acquired the securities of Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (NYSE MKT:ANV) common stock during the period between January 18, 2013 and August 5, 2013 (the "Class Period").
The Complaint alleges that Defendants misstated or failed to disclose operating defects and deficiencies concerning the Company's Lewis Leach Pad that rendered Defendants' positive statements about the Company's Lewis 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 materially false and misleading. The Complaint further alleges that in August 2013, approximately seven months after the beginning of the Class Period, Defendants 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 revealed 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 the defects and production deficiencies, as well as obtain various regulatory approvals to undertake these corrective actions. In addition, Defendants stated that the Company would indefinitely suspend its planned expansion at the Hycroft Mine due to the Company's inability to generate sufficient cash flows from operations, which was the result of amassed ore going unprocessed at the defective Lewis Leach Pad.
In response to these revelations, the price of Company 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%, on unusually heavy trading volume. Just weeks prior to these adverse revelations, however, the Company sold $150.5 million shares in a secondary public offering at artificially inflated prices.
If you wish to serve as lead plaintiff, you must move the Court no later than June 2, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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