NEW YORK, April 29, 2002 (PRIMEZONE) -- Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces it has filed a class action lawsuit in the United States District Court for the Southern District of New York (the "Court"), on behalf of all persons and entities who purchased the common stock of Stillwater Mining Company ("Stillwater" or the "Company") (NYSE:SWC) during the period from April 20, 2001 through and including April 1, 2002 (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 20, 2001 and April 1, 2002, thereby artificially inflating the price of Stillwater common stock. Throughout the Class Period, as alleged in the Complaint, Stillwater issued a series of materially false and misleading statements regarding its financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The Complaint alleges that these statements were materially false and misleading because, among other things, (i) Stillwater 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 to 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 shares of Stillwater stock during the Class Period, you may move the Court, no later than June 10, 2002, to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal standards.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Ramon Pinon IV, Wechsler Harwood Shareholder Relations Department: rpinoniv@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca