SOURCE: Izard Nobel LLP

April 14, 2009 16:02 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Mechel OAO

WEST HARTFORD, CT--(Marketwire - April 14, 2009) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased the securities of Mechel OAO ("Mechel" or the "Company") (NYSE: MTL) between October 3, 2007 and July 25, 2008, inclusive (the "Class Period").

The Complaint charges that Mechel and certain of its officers and directors violated federal securities laws. Specifically, Defendants failed to disclose the following: (i) Mechel had engaged in anticompetitive conduct by employing a discriminatory pricing policy for raw material sales between domestic and foreign steel firms; (ii) Mechel had engaged in monopolistic conduct by fixing and maintaining coking coal prices at artificially high levels and unreasonably refusing contracts, discovery of which would cause such conduct to cease and cause a significant decline in future revenue; (iii) the Company had used a sophisticated sales and distribution scheme involving wholly owned offshore trading companies to evade paying taxes on a portion of its revenue; and (iv) Mechel's financials were not prepared in accordance with Generally Accepted Accounting Principles. According to the Complaint, after Vladimir Putin called for an investigation into Mechel's pricing policies on July 24, 2008, and, again, after Prime Minister Putin revealed, on July 28, 2008, the Company's evasion of taxes, the value of Mechel's stock declined significantly.

If you are a member of the class, you may, no later than June 8, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/mechel/, or contact Izard Nobel LLP toll-free; (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

Contact Information

  • CONTACT:
    Nancy A. Kulesa or Wayne Boulton
    (800) 797-5499
    Email Contact