SAN FRANCISCO, May 13, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds Horsehead Holding Corporation (NASDAQ:ZINC) investors of the June 21, 2016 lead plaintiff deadline in securities class action.
If you suffered significant losses because of your purchases of Horsehead between May 21, 2014 and February 2, 2016 or have information that will help our investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing ZINC@hbsslaw.com or visiting https://www.hbsslaw.com/cases/ZINC. The lawsuit was filed in the U.S. District Court for the District of Delaware and investors have until June 21, 2016 to move the court to participate as a lead plaintiff.
The litigation concerns Defendants’ statements about its new Mooresboro zinc production facility and Horsehead’s liquidity to sustain itself until Mooresboro was fully ramped up.
On July 8, 2014, Horsehead announced its Mooresboro zinc production was “better than internal projections”. Subsequently, CEO James M. Hensler, and CFO Robert D. Scherich made statements to analysts and investors that apparently were undercut by then-existing known facts about Mooresboro’s design and operational problems and Horsehead’s inadequate liquidity.
In January 2015, Horsehead issued an additional 5.75 million shares at $12.75 per share amidst positive statements about Mooresboro like, “We have not identified any insurmountable technical or operational obstacles that materially challenge the value proposition of our new zinc facility.”
In January 2016, Horsehead announced that it would be idling the Mooresboro facility and laying off most of its employees. Then on February 2, 2016, the Company filed bankruptcy and a restructuring plan disclosing that it would cost $81.9 million over two years to get the Mooresboro facility back on track.
“We’re focused on Horsehead’s January 23, 2015 secondary offering of shares to the public, and investors having no idea that Defendants essentially bet the Company on the seriously defective Mooresboro facility,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Horsehead should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email ZINC@hbsslaw.com.
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