Shareholders Foundation, Inc.

Patriot Coal Corporation (PINK:PCXCQ) Investor Alert: Lawsuit Against Certain Officers Filed

A lawsuit was filed for certain investor in shares of Patriot Coal Corporation (PINK:PCXCQ) over allege securities laws violations. Deadline: November 21, 2012. Investors with a substantial investment in Patriot Coal Corporation should contact the Shareholders Foundation.

 
Repost This

San Diego, CA -- (SBWIRE) -- 09/25/2012 -- An investor in shares of Patriot Coal Corporation (PINK:PCXCQ) filed a lawsuit in the U.S. District Court for the Eastern District of Missouri against certain officers of Patriot Coal Corporation over alleged securities laws violations.

Investors who purchased shares of Certain Officers of Patriot Coal Corporation (PINK:PCXCQ) between October 21, 2010 and July 6, 2012, have certain options and there are short and strict deadlines running. Deadline: November 21, 2012. Investors who purchased a substantial amount of shares of Patriot Coal Corporation (PINK:PCXCQ) should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of Patriot Coal Corporation (PINK:PCXCQ) shares between October 21, 2010 and July 6, 2012, that certain of Patriot Coal's officers issued between October 21, 2010 and July 6, 2012materially false and misleading statements regarding the Company's business prospects.

Patriot Coal Corporation (PINK:PCXCQ) reported that its annual Revenue increased from over $1.63 billion in 2008 to over $2.37 billion in 2011. However, its Net Income of $142.73 million in 2008 fell to a Net Loss of $139.13 million in 2011.

Specifically, the plaintiff alleges that defendants allegedly violated Generally Accepted Accounting Principles and U.S. Securities and Exchange Commission ("SEC") rules by failing to properly account for costs associated with Court-ordered remediation obligations related to the Company's selenium water treatment requirements. In particular, so the plaintiff, defendants improperly capitalized these costs instead of recording them as expenses, thereby overstating the Company's financial results.

Furthermore, so the lawsuit, the defendants were also making allegedly false and misleading statements about Patriot Coal’s business health and continuing prospects. In particular, so the plaintiff, the defendants continuously touted that Patriot Coal’s "operations are performing well" and that the Company is positioned for "future growth."

However, in July 2012, Patriot Coal Corporation and substantially all of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York.

Those who purchased shares of Certain Officers of Patriot Coal Corporation (PINK:PCXCQ) between October 21, 2010 and July 6, 2012, have certain options and there are short and strict deadlines running. Deadline: November 21, 2012. Investors who purchased a substantial amount of shares of Patriot Coal Corporation (PINK:PCXCQ) should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Jacob Rosenfeld
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com