NEW YORK (TheStreet) -- Allied Nevada Gold Corp (ANV) shares continued to drop, falling 3% to $3.87 in trading on Tuesday.
The gold and silver producer's stock has been in a free fall since more allegations emerged that the company had failed to inform investors of potential manufacturing issues.
Those issues have led to increased production costs and a reduction of the company's revenue guidance, according to some shareholders.
Cohen Milstein Sellers & Toll PLLC is the latest law firm to announce that it was launching an investigation into the company.
Multiple lawsuits having already been brought over the previous three months.
"On August 6, 2013, Allied Nevada announced weaker-than-expected second quarter earnings, first half production and sales, along with higher-than-expected costs, and a reduction of its 2013 production and sales guidance," the firm said.
"It also announced that it was deferring construction of its Hycroft mill, primarily due to the inability of the company's operations to generate adequate cash flow. According to the complaint, all of the foregoing were attributable in whole or in part to the poor performance at the Company's Lewis leach pad," the statement concluded.
TheStreet Ratings team rates ALLIED NEVADA GOLD CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLIED NEVADA GOLD CORP (ANV) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."