| Company: | Mechel OAO |
| Ticker Symbol: | MTL |
| Class Period: | Oct-3-07 to Jul-25-08 |
| Date Filed: | Apr-9-09 |
| Lead Plaintiff Deadline: | Jun-8-09 |
| Court: | Southern District of New York |
| Allegations: | |
According to the complaint the plaintiff alleges that Mechel OAO ("Mechel") 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'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'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'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'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 had also used offshore traders to minimize tax payments. According to the Prime Minister, Mechel 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'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.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
