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Mechel OAO (NYSE: MTL) Investor Securities Class Action Lawsuit 04/08/2009

  • If you purchased shares of Mechel OAO (NYSE: MTL), you might have certain options and should contact the Shareholders Foundation, Inc.

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Lawsuit Overview

Case Dismissed
Company
Mechel Steel Group OAO
Security
NYSE: MTL

Case Name
Mechel OAO Shareholder Class Action Lawsuit 04/08/2009
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Southern District of New York

Class Period Begin
Class Period End
Deadline To File for Lead
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Summary

April 11, 2012 - The U.S. Court of Appeals for the Second Circuit ordered the judgment of the district court is affirmed and the case is dismissed.
September 9, 2011 - The lead plaintiff filed a notice of appeal.

August 9, 2011 - The court granted the defendants' motion to dismiss and denied the plaintiff's leave to file an amended complaint.

April 2, 2010 - The defendants filed a motion to dismiss.

February 9, 2010 - The lead plaintiff filed a second amended complaint.

October 29, 2009 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Mechel OAO (NYSE: MTL) common shares between October 3, 2007 and July 25, 2008. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 3, 2007 and July 25, 2008.

June 30, 2009 - The lead plaintiff and lead counsel were appointed.

June 8, 2009 - Lead plaintiff motions were filed.

April 9, 2009 - An investor in shares of Mechel OAO (NYSE: MTL) filed a lawsuit in the U.S. District Court for the Southern District of New York on behalf of purchasers of the securities of Mechel OAO (NYSE: MTL) between October 3, 2007 and July 25, 2008 over alleged violations of securities laws by Mechel OAO and certain of its officers.

According to the complaint the plaintiff alleges that Mechel OAO and certain of its officers violated the Exchange Act by failed to disclose between October 3, 2007 and July 25, 2008 material adverse facts about Mechel OAO’s financial well-being, business relationships, and prospects. According to the complaint, on July 24, 2008, Russian Prime Minister Vladimir Putin called for antitrust authorities to investigate Mechel OAO’s raw material pricing policy, and in particular its coking coal sales, as Mechel had sold raw materials to customers in Russia at twice that it had sold raw materials to non-Russian customers. Prime Minister Putin also recommended that Mechel OAO’s profit margins needed to be examined by the antitrust authorities, and “if need be,” by the special committee of the General Prosecutor. On this news, Mechel OAO’s shares fell $13.77 per share, or over 37.6 percent, to close on July 24, 2008 at $22.84 per share, on unusually heavy trading volume.

Then on July 28, 2008, Prime Minister Putin announced that Mechel OAO had also used offshore traders to minimize tax payments. According to the Prime Minister, Mechel OAO sold coal to a Swiss trading unit at a quarter of domestic prices, contributing to a coal shortage and higher steel prices in Russia. On this news, Mechel OAO’s shares fell $6.70 per share, or over 25.5 percent, to close on July 28, 2008 at $19.50 per share, on unusually heavy trading volume.