Hecla Mining Company
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST HECLA MINING COMPANY
February 1, 2012 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/hecla/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Idaho on behalf of purchasers of Hecla Mining Company (“Hecla”) (NYSE:HL) common stock during the period between October 26, 2010 and January 11, 2012 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/hecla/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Hecla and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Hecla is engaged in discovering, acquiring, developing, producing, and marketing silver, gold, lead and zinc.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, defendants failed to disclose operational problems at Hecla’s Lucky Friday silver mine. As a result of defendants’ false statements, Hecla’s stock traded at artificially inflated prices during the Class Period, reaching a high of $11.34 per share on December 29, 2010.
Due to a series of accidents at the Lucky Friday mine during 2011, the Mine Safety and Health Administration (“MSHA”) engaged in a close inspection of the mine. In early December, MSHA issued an accident report accusing Hecla of safety failures that led to the death of a miner in April 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 that the Lucky Friday 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 9 million ounces to around 7 million ounces. On this news, Hecla stock dropped $1.23 per share, to close at $4.61 per share on January 11, 2012, a one-day decline of 21%.
According to the complaint, during the Class period, defendants knew but concealed from the investing public the following adverse facts: (a) the Company was not in compliance with safety regulations at its Lucky Friday mine; (b) the Company had allowed sand and concrete material to improperly build up in the mine shaft over a period of years, creating a safety hazard; (c) following the December closure, the Company would be unable to reestablish mining operations at the Lucky Friday mine by February 2012, as the Company had previously represented; (d) the Company improperly accounted for its contingent liabilities in violation of Generally Accepted Accounting Principles; and (e) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s operations and its expected silver production.
Plaintiff seeks to recover damages on behalf of all purchasers of Hecla common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.