BENSALEM, Pa.--()--Law Offices of Howard G. Smith announces that it is investigating potential claims against Patriot Coal Corporation (“Patriot Coal” or the “Company”) (OTC Markets:PCXCQ) concerning possible violations of federal securities laws. The investigation focuses on allegations that certain statements issued by the Company between October 21, 2010 and July 6, 2012 were false and misleading concerning the Company’s financial performance and prospects.
Patriot Coal Corporation engages in the mining, production and sale of thermal coal, primarily to electricity generators in the eastern United States. The investigation concerns allegations that certain of the Company's officers violated Generally Accepted Accounting Principles and U.S. Securities and Exchange Commission rules by failing to properly account for costs associated with Court-ordered remediation obligations related to the Company’s selenium water treatment requirements, thereby overstating the Company's financial results.
On July 9, 2012 Patriot Coal announced that the Company and substantially all of its wholly owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Following this news, the price of Patriot Coal shares dropped 72% -- from a closing pricing of $2.19 per share on July 6, 2012, to a closing price of $0.61 per share on July 9, 2012.
If you purchased shares of Patriot Coal stock between October 21, 2010 and July 6, 2012, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.