LITTLE ROCK, Ark., May 3, 2002 (PRIMEZONE) -- The Emerson Firm announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Stillwater Mining Company ("Stillwater" or the "Company") (NYSE:SWC) common stock during the period between April 20, 2001 through April 1, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from the Firm.
The complaint charges Stillwater and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that these statements were materially false and misleading because, among other things: (i) Stillwater improperly classified "mineralized material" as "probable reserves"; (ii) defendants' improper manipulation of probable reserves overstated Stillwater's class period net income because defendants depreciated Stillwater's plant and equipment costs according of the life of these reserves. If defendants had properly accounted for these reserves, depreciation would have occurred much faster; and (iii) the reduction in probable reserves will likely result in an impairment charge, or a restatement of at least fiscal year 2001 results. Furthermore, defendants filed to disclose that the SEC had advised Stillwater by mid-December 2001 / early January 2002 that its methodology for the calculation of probable ore reserves was improper and would have to be changed.
On April 2, 2002, when defendants belatedly disclosed that the Company's accounting practices had been condemned by the SEC, the stock dropped by 24% in one day on extraordinarily high volume of 4,743,600 shares traded, vastly greater than the Company's average trading volume of approximately 400,000 shares per day. The full extent of Stillwater's losses is still unknown to the market, since the revision to reserves could adversely impact 2001 net income, and result in a downward financial restatement of prior quarters.
If you bought Stillwater common stock between April 20, 2001 through April 1, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than June 10, 2002. If you are a member of this class, you can join this class action by contacting The Emerson Firm. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice, or may choose to do nothing and remain an absent class member.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. In fact, the Firm was recently appointed by a Court in Houston to the Plaintiffs' Counsel Steering Committee prosecuting the Enron retirement plan litigation. The firm has offices in Texas and Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.