Robbins Arroyo LLP: Primero Mining Corp. (PPP) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Central District of California. The complaint alleges that officers and directors of Primero Mining Corp. (NYSE: PPP) violated the Securities Exchange Act of 1934 between October 5, 2012 and February 3, 2016, by making materially false and misleading statements about Primero’s business prospects. Primero is a precious metals producer that engages in the acquisition, exploration, development, and operation of mineral resource properties in Canada and Mexico.
Primero Accused of Inaccurately Recording Revenues and Taxes
According to the complaint, on October 5, 2012, Primero issued a press release announcing a positive advance tax ruling by the Mexican tax authorities – Servicio de Administracion Trubutaria (“SAT”) – in favor of its Mexican subsidiary, Primero Empresa Minera, S.A. de C.V. (“PEM”) on its Advance Pricing Agreement (“APA”) filing made in October 2011. The release stated that the ruling confirms that PEM appropriately records revenue and taxes from sales under Primero’s silver purchase agreement with Silver Wheaton Corp. In several subsequent filings with the U.S. Securities and Exchange Commission, Primero represented that its subsidiary was recording revenues and taxes in accordance with the APA. The complaint alleges, however, that Primero officials failed to disclose that PEM was inappropriately recording revenues and taxes from sales under its silver purchase agreement between Primero and Silver Wheaton.
On February 3, 2016, Primero issued a press release announcing that the SAT filed a legal claim seeking to nullify PEM’s APA filed by Primero in October 2011 and issued by the SAT in 2012. On this news, Primero stock fell $0.74 per share, or over 28%, to close at $1.89 per share on February 4, 2016.
Primero Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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