NEW YORK, Jan. 28, 2012 /PRNewswire/ --Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Walter Energy, Inc. ("Walter" or the "Company") (NYSE: WLT).
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The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Walter's business was suffering from "squeeze" events in Alabama and lower coal transportation rates in Canada which hampered the Company's coal production; and (2) Walter's commitment to ship more than 700,000 tons of coal in the second quarter at first quarter sales prices would hurt the Company's average sales prices and operating results.
On August 3, 2011, Walter issued a press release announcing its operating results for its 2011 fiscal second quarter, the period ended June 30, 2011. For the quarter, the Company announced net income of $107.4 million, or $1.71 per diluted common share, significantly less than Wall Street estimates. Then, on September 21, 2011, Walter issued a press release announcing its attempt to "enhance" its historical statistical disclosure and its revisions to its 2011 second half sales expectations. In response to this announcement, the price of Walter common stock declined from $75.00 per share on September 20, 2011 to $66.25 on September 21, 2011, on extremely heavy trading volume.
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Take Action
If you purchased Walter securities between April 20, 2011 and September 21, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/WLT. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Walter Energy's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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