Hecla Mining Company
Robbins Umeda LLP Announces an Investigation of Hecla Mining Company
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Hecla Mining Company (NASDAQ: HL). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether members of the board of directors at Hecla Mining breached their fiduciary duties to shareholders and maintained woefully inadequate controls to the detriment of the company and investors. In particular, the firm is investigating the closure of Hecla Mining’s Silver Shaft at the Lucky Friday mine in Mullan, Idaho by the Mine Safety and Health Administration (“MSHA”). According to a press release issued by the company, the closure comes pursuant to the MSHA’s investigation following a December 14, 2011 rock burst. This was not the first closure for the mine. Prior incidents at the mine were reported on April 15, 2011 and November 18, 2011, both resulting in fatal injuries to miners and temporary closure of the mine. In its Report of Investigation of the April 15, 2011 incident, the MSHA root cause analysis stated that “Management policies, procedures, and controls failed to ensure appropriate supervisors or other designated persons examined and tested ground conditions to determine if additional ground control measures needed to be taken to ensure the safety of minors prior to commencing work on the slope.”
As a result of the closure, all significant activities at the mine are on hold and production is not expected to resume until early 2013. Hecla Mining has announced that 2012 production is now estimated at only 7 million ounces, down from a projected 9 to 10 million ounces. Further, the value of Hecla Mining stock declined 20% on this news.
Robbins Umeda LLP highlights that Hecla Mining Company shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.