Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Walter Energy, Inc.
Robbins Geller Rudman & Dowd LLP ('Robbins Geller?) (http://www.rgrdlaw.com/cases/walterenergy/)
today announced that a class action has been commenced in the United
States District Court for the Northern District of Alabama on behalf of
purchasers of the common stock of Walter Energy, Inc. ('Walter? or the
'Company?) (NYSE: WLT) between April 20, 2011 and September 21, 2011,
inclusive (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, Samuel H. Rudman or David A. Rosenfeld of
Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com.
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/walterenergy/.
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 Walter and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Walter, through
its consolidated subsidiaries, mines and exports hard coking coal for
the global steel industry.
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company′s
business and prospects. Specifically, defendants misrepresented and/or
failed to disclose the following adverse facts: (i) that the Company was
experiencing so-called 'squeeze? events in Alabama and lower coal
transportation rates in Canada that significantly reduced Walter′s coal
production; (ii) that the Company′s commitment to ship more than 700,000
tons of coal in the second quarter at first quarter sales prices would
result in a material adverse effect on Walter′s average sales prices and
operating results during the second quarter; (iii) that Walter was
experiencing a significant decline in its margins and profitability; and
(iv) that, based on the foregoing, defendants lacked a reasonable basis
for their positive statements about the Company and its business
prospects during the Class Period.
On August 3, 2011, Walter issued a press release announcing its
operating results for its 2011 fiscal second quarter, the period ended
June 30, 2011. For the quarter, the Company announced net income of
$107.4 million, or $1.71 per diluted common share, significantly less
than Wall Street estimates. Then, On September 21, 2011, Walter issued a
press release announcing its attempt to 'enhance? its historical
statistical disclosure and its revisions to its 2011 second half sales
expectations. In response to this announcement, the price of Walter
common stock declined from $75.00 per share on September 20, 2011 to
$66.25 on September 21, 2011, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Walter
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.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David
A. Rosenfeld
djr@rgrdlaw.com