Goldman Scarlato Karon and Penny, P.C., a law firm with offices in Wayne and Cleveland, Oh., has begun an investigation into Allied Nevada Gold Corp. to determine whether Allied Nevada violated federal securities laws, Reuters is reporting.

The attorneys are looking into whether the Reno firm misrepresented Nevada about its operations and improperly concealed that certain equipment crucial to the its mining efforts suffered from serious, ongoing defects and deficiencies between Jan. 18, 2013 and Aug. 5, 2013.

GSKP allege that last month Allied Nevada announced disappointing results for the first quarter of 2013, attributing the downturn to inclement weather and rising input costs. It also revealed that previously announced plans to expand operations at its sole operating property, the Hycroft Mine in Nevada, would be revised to take effect in phases. In addition, it announced that it would sell 14 million shares of common stock to investors through a secondary public offering to fund capital expenditures at the Hycroft Mine and for other corporate purposes.

However, Randy Buffington, president and chief executive officer of Allied Nevada Gold Corp., offers a very different picture of the firm. “Overall, we continue to see improved operational performance at Hycroft,” said Buffington in a company news release.

“Our silver to gold ratio improved steadily through the second half of 2013 to date as we increased the percentage of our metal produced as doré,” he said. “We look forward to the benefits that the crusher is expected to bring us in the second quarter with increased recoveries for both metals, which we believe should result in a further increase of the silver to gold ratio.”

Buffington said Hycroft continues to benefit from the increased mining capacity and improvements that have been implemented to the heap leach operation over the last few years. Silver production and sales improved in the first quarter, up approximately 14 and 15 percent, respectively, from the fourth quarter of 2013 and more than double the first quarter of 2013.

Silver production and sales have improved significantly with the increased solution processing through the Merrill-Crowe plant as compared with the carbon columns, which are less efficient in extracting silver. Gold sales were slightly lower than the fourth quarter of 2013 due to lower grades mined in the last year, but were more than double the ounces sold in the comparative first quarter of 2013 and within the upper limit of the first quarter 2014 guidance range, Allied Nevada reported.

The company’s full first quarter, 2014 report is here: http://www.alliednevada.com/investors/news/pdf/482014-1.pdf. The next report will be released during the week of May 5.

GSKP also says on Aug. 6, 2013, Allied Nevada announced that it would defer construction at the Hycroft Mine expansion project due to operating defects in the infrastructure – requiring costly remedies. Allied Nevada attributed the decision to halt the project to the discovery in May and June 2013 of poor operational decisions made in late 2012 and early 2013.

Allied Nevada’s stock price fell sharply in connection with each of these revelations, causing shareholders to incur significant losses, according to GSKP, which is looking for information to assist in its investigation. Those interested may discuss their legal rights without obligation or cost by contacting the firm: scarlato@gskplaw.com, 484- 580-8740. The firm wants to speak with whistleblowers, former employees, shareholders and others.

Goldman Scarlato Karon and Penny, P.C. prosecutes securities fraud, consumer fraud, price-fixing, ERISA class actions and shareholder-derivative actions throughout the U.S. The firm says its lawyers have recovered hundreds of millions of dollars on behalf of consumers, investors and businesses.

Allied Nevada operates the Hycroft gold mine near Winnemucca, Nev. The company also owns more than 100 advanced stage exploration properties located throughout Nevada.