Walter Energy, Inc. (NYSE:WLT) Investor Files Class Action Lawsuit Over Securities Laws Violations In Connection With Certain Of Its Financial Statements
San Diego, Jan. 27, 2012 (Shareholders Foundation) -- An investor in shares of Walter Energy, Inc. (NYSE:WLT) filed a lawsuit in the U.S. District Court for the Northern District of Alabama against Walter Energy over alleged Violations of Federal Securities Laws in connection with certain of its financial statements.
According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of Walter Energy, Inc. (NYSE: WLT) between April 20, 2011 and September 21, 2011, that Walter Energy and certain of its officers and directors violated the Securities Exchange Act of 1934 by allegedly issuing materially false and misleading statements regarding Walter Energy’s business and prospects.
Walter Energy, Inc. reported that its annual revenue rose from $774.79million in 2007 to $1.58billion in 2010 and its Net Income increased from $112million for ’07 to $395.43million in 2010. Walter Energy reported that its third quarter Revenue increased from $464.26million in 2010 to $690.07million in 2011, however its third quarter Net Income fell from $136.22million in 2010 to $76.22million in 2011.
Shares of Walter Energy, Inc. (Public, NYSE:WLT) surged from as low as $12.65 per share in December ’08 to as high as $141.17 per share on April 8, 2011.
On August 3, 2011, Walter Energy, Inc. reported its operating results for its 2011 fiscal second quarter, the period ended June 30, 2011. For the quarter, Walter Energy, Inc. announced net income of $107.4 million, or $1.71 per diluted common share. The plaintiff claims that this is significantly less than Wall Street estimates.
Then, On September 21, 2011, Walter Energy, Inc. announced its attempt to “enhance” its historical statistical disclosure and its revisions to its 2011 second half sales expectations.
Since April 2011, NYSE WLT shares dropped down to under $60 in early January 2012.


