NEW ORLEANS, July 23, 2018 (GLOBE NEWSWIRE) -- Kahn Swick & Foti, LLC (“KSF”) and KSF partner, Former Attorney General of Louisiana, Charles C. Foti, Jr., announce the commencement of a securities class action lawsuit against Klondex Mines Ltd. (“Klondex” or the “Company”) (NYSE:KLDX). KSF filed the lawsuit in the United States District Court for the District of Nevada – Reno Division (Case No. 3:18-CV-00288) on behalf of shareholders of Klondex who held shares of Klondex and have been harmed by Klondex and its board of directors (the “Board”) for alleged violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) in connection with the sale of the Company to Hecla Mining Company (“Hecla”) and its affiliates.
About the Lawsuit
On March 19, 2018, the Company announced that it had entered into a merger agreement (the “Agreement”) in connection with the sale, pursuant to which Klondex would become an indirect wholly-owned subsidiary of Hecla and each share of Klondex common stock would be converted into the right to receive (i) the equivalent of $2.47 in either cash, shares of Hecla common stock, or a combination of cash and Hecla shares (subject to proration), plus (ii) 0.125 of a share of Havilah Mining Corporation (“Havilah”), a new company formed to hold Klondex’s Canadian assets.
The complaint alleges that the Form DEFM14A Proxy Statement (the “Proxy”) filed in connection with the merger provides materially incomplete and misleading information about the Company's financials and the transaction, in violation of Sections 14(a) and 20(a) of the Exchange Act. Specifically, the complaint alleges that the Proxy contains materially incomplete and misleading information concerning: (i) the financial analyses conducted by the Company’s financial advisors in connection with the merger; and (ii) the financial projections for Klondex, Havilah, Hecla, and the pro forma combined company.
What You May Do
If you were a Klondex shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com) toll free at 1-877-515-1850 or visit https://www.ksfcounsel.com/cases/nyse-kldx/ to learn more. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court no later than sixty (60) days from the date of the publication of this notice. 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. KSF encourages both institutional and individual purchasers of Klondex to take action. The ultimate resolution of any securities class action is strengthened through the involvement of aggrieved shareholders and lead plaintiffs who have large financial interests. KSF also encourages anyone with information regarding Klondex’s conduct during the period in question to contact the firm.
About Kahn Swick & Foti, LLC
To learn more about KSF, whose partners include the Former Louisiana Attorney General, Charles C. Foti, Jr., and other lawyers with significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders, you may visit www.ksfcounsel.com.
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
lewis.kahn@ksfcounsel.com
1-877-515-1850
1100 Poydras St., Suite 3200
New Orleans, LA 70163