SOURCE: Izard Nobel LLP

February 02, 2012 19:19 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Walter Energy, Inc.

WEST HARTFORD, CT--(Marketwire - Feb 2, 2012) - 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 Northern District of Alabama on behalf of purchasers of the common stock of Walter Energy, Inc. ("Walter" or the "Company") (NYSE: WLT) between April 20, 2011 and September 21, 2011, (the "Class Period").

The Complaint alleges that Walter and certain of its officers and directors violated the federal securities laws. Specifically, defendants failed to disclose the following adverse facts: (i) that Walter was experiencing so-called "squeeze" events in Alabama and lower coal transportation rates in Canada that significantly reduced Walter's coal production; (ii) that the Company's commitment to ship more than 700,000 tons of coal in the second quarter at first quarter sales prices would result in a material adverse effect on Walter's average sales prices and operating results; and (iii) that Walter was experiencing a significant decline in its margins and profitability.

On August 3, 2011, Walter announced its operating results for the period ended June 30, 2011. Walter announced net income of $107.4 million, significantly less than Wall Street estimates. Then, On September 21, 2011, Walter announced its attempt to "enhance" its historical statistical disclosure and its revisions to its 2011 second half sales expectations. On this news, Walter stock fell from $75.00 on September 20, 2011 to $66.25 on September 21, 2011.

If you are a member of the class, you may, no later than March 26, 2012, 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/walter/, 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.

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