An investigation on behalf of current long term investors in Allied Nevada Gold Corp. (NYSEMKT:ANV) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSEMKT:ANV stockholders should contact the Shareholders Foundation at email@example.com
San Diego, CA -- (SBWIRE) -- 05/27/2014 -- An investigation on behalf of current long-term investors in shares of Allied Nevada Gold Corp. (NYSEMKT:ANV) concerning potential breaches of fiduciary duties by certain directors and officers of Allied Nevada Gold was announced.
Investors who are current long term investors in Allied Nevada Gold Corp. (NYSEMKT:ANV) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSEMKT:ANV stocks follows a lawsuit filed recently against Allied Nevada Gold over alleged securities laws violations. The investigation on behalf of current long term investors in NYSEMKT:ANV stocks concerns whether certain Allied Nevada Gold officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the District of Nevada the plaintiff alleges that Allied Nevada Gold Corp. violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that between January 18, 2013 and August 5, 2013 defendants issued materially allegedly false and misleading statements regarding Allied Nevada Gold Corp.’s financial performance and future prospects and failed to disclose adverse facts, including that one of its three impermeable leach pads, the Lewis leach pad, was beset with undisclosed operating defects and production deficiencies, including, but not limited to, an insufficient supply of fresh water to leach ore and an inadequate solution pumping and piping infrastructure, that in order to remediate the operating defects and production deficiencies at the Lewis leach pad, the Company would need to double the amount of fresh water available at the facility, replace the existing irrigation tubing, piping and pumping infrastructure and seek various regulatory approvals, that the recurring operating defects and production deficiencies at the Lewis leach pad were having a materially adverse effect on the Company’s production costs and operating cash flows, that the Company’s operations were not generating the cash flow necessary to proceed with the construction of the Hycroft Mine mill, that the costs to remediate the operating defects and production deficiencies at the Lewis leach pad were reasonably likely to have a material adverse effect on the Company’s future production, production costs and cash flows, that, while Allied Nevada’s newly installed carbon columns increased its solution processing capacity, silver recovery from that process was approximately one-third of the Company’s historical recovery rate, that the Company’s disclosure controls, and the certifications regarding those disclosure controls, were materially false and misleading; and that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about Allied Nevada’s 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.
On August 6, 2013, Allied Nevada Gold Corp. reported its second quarter 2013 results. Allied Nevada Gold Corp. said that its production costs had soared, and would continue to do so. Furthermore, Allied Nevada Gold Corp. stated it would indefinitely suspend its planned expansion at the Hycroft mine. Shares of Allied Nevada Gold Corp. (NYSEMKT:ANV) declined to $3.73 per share on August 7, 2013 and continued to decline to as low as $3.07 per share in December 2013.
Then on February 24, 2014, Allied Nevada Gold Corp. reported its 2013 financial and operating results. Among other things, Allied Nevada Gold Corp. reported that its annual total Revenue rose from $214.56 million in 2012 to $267.90 million in 2013, while its Net Income declined from $47.73 million in 2012 to $1.41 million in 2013.
Shares of Allied Nevada Gold Corp. (NYSEMKT:ANV) closed on May 23, 2014, at $3.08 per share.
Those who purchased shares of Allied Nevada Gold Corp. (NYSEMKT:ANV) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego