Rigrodsky & Long, P.A. Files Securities Fraud Class Action Lawsuit Against Agnico-Eagle Mines Limited

Rigrodsky & Long, P.A. announces that it is has filed a shareholder class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired the securities of Agnico-Eagle Mines Limited (“Agnico-Eagle” or the “Company”) (NYSE: AEM) between April 29, 2010 and October 19, 2011, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 (the “Complaint”).  The case is entitled Hastings v. Agnico-Eagle Mines Limited, C.A. No. 11-CV-8466 (S.D.N.Y.).

Agnico-Eagle, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico.

The Complaint names Agnico-Eagle and certain of the Company’s current and former directors and officers as defendants.  The Complaint alleges that the Defendants failed to disclose material adverse facts regarding the Company’s overall operational and financial condition that were caused by significant geo-physical problems in its mining operations and gold production at its Goldex mine located in Val d’Or, Quebec, Canada.  The Defendants’ failure to disclose these problems during the Class Period rendered their statements concerning the Company’s financial condition and future prospects materially false and misleading.

On October 19, 2011, the Company announced it was suspending mining operations and gold production at the Goldex mine, effective immediately.  The Company’s announcement cited the receipt of an opinion from a second rock mechanics consulting firm recommending that “underground mining operations be halted until the situation is investigated further.”  The “situation” was water inflow and ground stability issues within the mine.  As a result, Agnico-Eagle revealed that it will write off its investment in Goldex and it is expected that this will total approximately $260 million.

In response to its surprising announcement, Agnico-Eagle’s shares reacted by falling 18.5%, to close at $46.51 per share on October 19, 2011, on very heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than January 6, 2012.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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