By early afternoon, shares had taken off 6.6% to $3.39.
After market close last week, Frank & Bianco LLP announced it was investigating possible claims against Allied Nevada Gold on behalf of shareholders of record between January 18 and August 5, 2013.
"The investigation concerns possible violations of the federal securities laws related to materially false and misleading statements or omissions of material information during the Class Period, regarding the concealment that certain equipment crucial to the Company's mining efforts suffered from serious, ongoing defects and deficiencies," the legal firm said in a statement.
Earlier in the month, Cohen Milstein Sellers & Toll PLLC brought announced the launch of a similar investigation into the company.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
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."