Allied Nevada Gold Corp (AMEX: ANV) Investor Securities Class Action Lawsuit 04/03/2014

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Company Name(s): 
Allied Nevada Gold
Case Name: 
Allied Nevada Gold Shareholder Class Action Lawsuit 04/03/2014
Case Status: 
Lawsuit Filed
Affected Securities
AMEX: ANV
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/03/2014
Class Period Begin: 
01/18/2013
Class Period End: 
08/05/2013
Court of Filing: 
U.S. District Court for the District of Nevada
Deadline To File for Lead: 
06/02/2014
Summary: 

October 16, 2017 - The lead plaintiff filed a notice of appeal

September 20, 2017 - The court granted defendants' motion to dismiss and dismissed the case with prejudice.

January 25, 2017 - Defendants filed a motion to dismiss.

November 3, 2016 - The lead plaintiff filed a second amended consolidated complaint.

August 8, 2016 - The court granted defendants' motion to dismiss without prejudice and with leave to amend.

September 29, 2015 - Defendants filed a motion to dismiss.

May 1, 2015 - The lead plaintiff filed an amended consolidated complaint.

November 7, 2014 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

June 2, 2014 - Lead plaintiff motions were filed.

April 3, 2014 - An investor in shares of Allied Nevada Gold Corp (AMEX: ANV) filed a lawsuit in the U.S. District Court for the District of Nevada against Allied Nevada Gold Corp over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 18, 2013 and August 5, 2013.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Allied Nevada Gold Corp (AMEX: ANV) between January 18, 2013 and August 5, 2013 that Allied Nevada Gold Corp and certain of its officers and directors 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 re-mediate the operating defects and production deficiencies at the Lewis leach pad, Allied Nevada Gold Corp 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 Allied Nevada Gold Corp’s production costs and operating cash flows, that Allied Nevada Gold Corp’s operations were not generating the cash flow necessary to proceed with the construction of the Hycroft Mine mill, that the costs to re-mediate the operating defects and production deficiencies at the Lewis leach pad were reasonably likely to have a material adverse effect on Allied Nevada Gold Corp's future production, production costs and cash flows, that, while Allied Nevada Gold Corp’s newly installed carbon columns increased its solution processing capacity, silver recovery from that process was approximately one-third of Allied Nevada Gold Corp’s historical recovery rate, that Allied Nevada Gold Corp’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 Gold Corp’s leach pad solutions processing capacity, the Hycroft Mine mill expansion, and Allied Nevada Gold Corp’s expected gold and silver production and its expected operating income and cash flows.

Shares of Allied Nevada Gold Corp (AMEX: ANV) declined from $39.45 per share in October 2012 to $5.43 per share in July 2013. Then 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 (AMEX: 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 (AMEX: ANV) closed on April 3, 2014, at $4.30 per share.