Violations of federal securities laws as a result of the Company’s issuance of a series of materially false statements. It is alleged that, due to a series of accidents at Hecla’s Lucky Friday mine during 2011, the Mine Safety and Health Administration (“MSHA”) engaged in a close inspection of the mine and, in early December, issued an accident report accusing Hecla of safety failures that led to a miner’s death in April of 2011. Thereafter, on January 5, 2012, MSHA issued a closure order for the Lucky Friday mine for the removal of built-up material in the shaft that had been leaking from a pipe into the shaft for a number of years. On January 11, 2012, Hecla announced the mine would be closed for up to a year based upon MSHA’s order. As a result of the closure, Hecla reduced its estimated silver production for 2012 from more than 9M ounces to around 7M ounces. The Complaint alleges that Defendants knew, but concealed, the following adverse facts, among others: (a) Hecla was not in compliance with safety regulations at its Lucky Friday mine; (b) following the December 2011 closure, Hecla would be unable to reestablish mining operations at the mine by February of 2012, as it had previously represented; (c) the Company improperly accounted for its contingent liabilities, in violation of Generally Accepted Accounting Principles; and (d) based on the foregoing, Defendants lacked a reasonable basis for their positive statements regarding Heckla’s operations and its expected silver production. Filed in D. Id.
Lead Plaintiff Motion Date: The deadline to file for lead plaintiff in this action is 04/02/2012.
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