Safirstein Metcalf LLP Reminds Investors of Upcoming Deadline to File Lead Plaintiff Papers in Horsehead Holding Corp. Securi...
20 Maio 2016 - 1:10PM
Safirstein Metcalf LLP announces a class action has been filed on
behalf of purchasers of Horsehead Holding Corp. securities
(PinkSheets:ZINCQ) (NASDAQ:ZINC) from May 21, 2014 through February
2, 2016, both dates inclusive (the “Class Period”).
If you purchased Horsehead securities during the Class Period,
you may, no later than June 21,
2016, request that the Court appoint you lead
plaintiff of the proposed class. A lead plaintiff is a
representative party that acts on behalf of all class members in
directing the litigation. Any member of the purported 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.
If you want more information about the Horsehead Securities
Class Action, contact Sheila Feerick at Safirstein Metcalf LLP,
1-800-221-0015 or email info@SafirsteinMetcalf.com or
at http://www.safirsteinmetcalf.com/horsehead.html
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements and/or failed to
disclose adverse information regarding Horsehead's business,
prospects and operations, including that: (1) construction defects
at the Mooresboro Facility had left the facility unable to operate
as planned; (2) operational problems at the facility were
significant, pervasive and the result of fundamental engineering
and operational defects; (3) the Company had not rectified the
problems at the Mooresboro Facility and did not know how to rectify
such problems, and as a result, production disruptions and tens of
millions of dollars in costs related to these problems were likely
and anticipated; (4) instead of permanently fixing problems at the
Mooresboro Facility, the Company was employing expensive, temporary
workarounds in order to achieve even limited production capacity,
and as a result, the facility was not providing significant cost
savings, but was instead causing the Company to spend cash at an
unsustainable rate; (5) the Mooresboro Facility did not have an
annual zinc production capacity of 155,000 tons and could not even
sustainably achieve 50% of that capacity; (6) operational issues at
the Mooresboro Facility were not improving, but in fact were
deteriorating, as stop-gap measures used by the Company to boost
production in the short term were unsustainable, untested, highly
risky and causing decreased operational stability; and (7) the
Company did not have sufficient liquidity, cash on hand and
anticipated cash flows for general corporate purposes to sustain it
through the full ramp-up of the Mooresboro Facility. As a
result of these false statements and omissions, Horsehead
securities traded at artificially inflated prices during the Class
Period, with its stock price reaching a high of $20.70 per
share.
Then, according to the complaint, Horsehead began to reveal
various production problems at the Mooresboro Facility. On
December 10, 2015, ratings agency Moody's downgraded the Company's
corporate debt due to recurring problems at the Mooresboro
Facility. By early January 2016, the Company had failed to
make an interest payment to certain holders of the Company's
convertible senior notes and shortly thereafter defaulted on
multiple credit agreements. On January 22, 2016, Horsehead
announced that it was idling the Mooresboro Facility and laying off
most employees at the site.
Then on February 2, 2016, Horsehead announced that it had
initiated bankruptcy proceedings under Chapter 11 of the U.S.
Bankruptcy Code. Subsequently, on February 11, 2016, trading
in Horsehead stock was suspended and on February 23, 2016, the
Company's common stock was removed from listing on the NASDAQ stock
exchange. At the time that trading in Horsehead stock was
suspended the price of the stock had fallen to $0.08 per share.
About Safirstein Metcalf LLP Safirstein Metcalf
LLP focuses its practice on shareholder rights. The law firm also
practices in the areas of antitrust and consumer protection.
All of the Firm’s legal endeavors are rooted in its core mission:
provide investor and consumer protection.
Attorney advertising. Prior results do not guarantee a
similar outcome.
Safirstein Metcalf LLP
Peter Safirstein, Esq.
1250 Broadway
27th Floor
New York, NY 10001
1-800-221-0015
info@SafirsteinMetcalf.com
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