San Diego, March 12, 2012 (Shareholders Foundation) -- A current investor in NYSE:HL shares filed a lawsuit against directors of Hecla Mining Company over alleged breaches of fiduciary duties by failing to properly oversee and manage Hecla Mining Company in connection with its Lucky Friday mine operations.
In April and November 2011 fatal accidents occurred at Hecla Mining’s Lucky Friday mine in Northern Idaho, and in December 2011, a rock burst injured seven miners prompting a temporary close down and an investigation by the Federal Mine Safety and Health Administration (“MSHA”)

The plaintiff alleges that Hecla Mining Company disregarded the safety issues that led to the death of the two miners. Federal inspectors had determined that sand and concrete material had been leaking from a pipe into the shaft for a number of years and MSHA cited repeated failure to maintain established ground support systems throughout the mine, against Hecla Mining Company and issued 59 citations and 15 orders to Hecla Mining, so the lawsuit.

The plaintiff says that Helca Mining’s Lucky Friday mine contributes to 25% of the Hecla Mining’s consolidated sales and as a result of the Lucky Friday mine closure, Helca Mining’s 2012 estimated silver production has been reduced from more than 9 million ounces to only 7 million ounces.

NYSE:HL shares dropped from slightly below $6 per share on Jan. 10, 2012 to as low as $4.31 per share on January 11, 2012, less than half of its value one year earlier.