Horsehead investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Horsehead, together with its subsidiaries, is a leading U.S. producer of zinc metal and a leading recycler of electric arc furnace dust. The company derives the majority of its revenues from the sale of zinc. On February 2, 2016, Horsehead filed for protection under the bankruptcy laws and, therefore, is not named as a defendant in this action.
In May 2014, Horsehead commenced zinc production at its new facility located in Mooresboro, North Carolina (the “Mooresboro Facility”) and permanently shut down production at its 80-year old Monaca, Pennsylvania facility (the “Monaca Facility”) the next month. According to the complaint, unbeknownst to the investing public, the Mooresboro Facility was plagued with severe construction, engineering and operational defects.
The complaint alleges that throughout the Class Period the defendants provided operational updates that misstated the extent and seriousness of the Mooresboro Facility’s problems, provided zinc production figures detached from the widespread and unsolved defects throughout the production process, and failed to disclose cash and revenue shortfalls that threatened the company’s ability to pay its creditors and complete the facility’s ramp-up. The complaint further alleges that as a result of defendants’ false statements, Horsehead common stock traded at artificially inflated prices during the Class Period, with its share price reaching a high of $20.70 per share on July 23, 2014.
On January 23, 2015, Horsehead conducted a secondary offering of 5.75 million shares of its common stock at $12.75 per share (the “Secondary Offering”). As a result of the Secondary Offering, the Company generated approximately $73 million in gross offering proceeds. The registration statement, which incorporated a prospectus supplement, issued in connection with the Secondary Offering contained false and misleading statements of fact and failed to disclose facts required to be disclosed therein under the rules and regulations regarding its preparation.
On February 2, 2016, Horsehead announced that it had initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code. On February 11, 2016, trading in Horsehead stock was suspended. On February 23, 2016, Horsehead filed a notice on Form 25-NSE that its common stock had been removed from listing on the NASDAQ stock exchange.
If you are a member of the class described above, you may no later than June 21, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706