LOS ANGELES--()--Glancy Binkow & Goldberg LLP, representing investors of Patriot Coal Corporation (“Patriot Coal” or the “Company”) (OTC Markets:PCXCQ), has filed a class action lawsuit in the United States District Court for the Eastern District of Missouri on behalf of a class (the “Class”) consisting of all purchasers of Patriot Coal securities between October 21, 2010 and July 6, 2012, inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, or by email at email@example.com.
Patriot Coal Corporation engages in the mining, production and sale of thermal coal, primarily to electricity generators in the eastern United States. The Complaint alleges that the defendants failed to properly account for the costs associated with court-ordered remediation obligations related to certain of the Company’s selenium water treatment requirements -- capitalizing these costs instead of recording them as expenses, thereby overstating the Company’s financial results. In addition, during the Class Period defendants knew but concealed from investors the following material adverse information: (i) the Company’s internal controls over financial reporting were materially inadequate; (ii) defendants improperly accounted for selenium treatment facility liabilities at the Company’s mines; (iii) the Company’s reported financial results were overstated and were not presented in conformity with GAAP; (iv) the Company’s business health was weakening; and (v) as a result of the foregoing, the Company would not survive as a going concern.
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, representing a one-day decline of 72% on volume of more than 38 million shares.
If you are a member of the Class described above, you may move the Court, no later than November 21, 2012 to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to learn more about this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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