NEW YORK, May 12, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Horsehead Holding Corp. (“Horsehead” or the “Company”) (NASDAQ:ZINC) of the June 21, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Delaware on behalf of all those who purchased Horsehead securities between May 21, 2014 and February 2, 2016 (the “Class Period”). The case, Soto v. Hensler et al, No. 1:16-cv-00292 was filed on April 22, 2016.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the reality of the operational, cost and efficiency challenges at the Mooresboro Facility (“Facility”).
Specifically, the lawsuit alleges a series of partial disclosures on the problems at the Facility started on November 9, 2015, when the Company’s President and Chief Executive Officer (“CEO”) and other executives spoke about increased efforts into addressing issues at the Facility.
Then, on December 10, 2015, Moody’s downgraded the Company’s corporate debt from B3 to Caa2 citing a negative outlook on the state of the Facility. In early January 2016, the Company failed to make a $1.8 million interest payment to certain holders of the Company’s convertible senior notes and shortly thereafter defaulted on multiple credit agreements.
On January 22, 2016, Horsehead announced a cease in operations at the Facility and the firing of most employees at the site. On February 2, 2016, Horsehead announced that it had initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code. Shortly after, on February 11, 2016, trading in Horsehead stock was suspended and, on February 23, its common stock was delisted from the NASDAQ stock exchange.
The Company’s Class Period high of $20.40 per share on July 23, 2014 lost 99% of its value as these revelations came to light.
Request more information now by clicking here: www.faruqilaw.com/ZINC. There is no cost or obligation to you.
Take Action
If you invested in Horsehead stock or options between May 21, 2014 and February 2, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/ZINC. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Horsehead’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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