Recent Securities Litigations
Golden Star Resources Ltd Common Stock (AMEX: GSS)
According to the Complaint, Golden Star Resources Ltd. is a mid-tier gold mining company with operating mines located in Ghana. Substantially all the Company’s revenue is generated through two underground mines called Wassa and Prestea. Prior to the start of the Class Period, the Prestea mine, which had previously not been in commercial operation for over 15 years, was experiencing operational issues that were negatively affecting the mine’s performance.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the Company had insufficient geological and geotechnical data in its Prestea mine; (2) the Company had experienced deficiencies in its operating practices and mining methods including inaccurate long hole drilling and blasting in its Prestea mine; (3) the Company did not have the mining flexibility and more measured resources to ensure higher reserve grade; (4) the Company had experienced increased tonnage at much lower grade where it had to supplement some of the production with oxide material; (5) the Company had excessive dilution which drove lower mining rates at the Prestea mine; and (6) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On June 25, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. The cases were consolidated under Docket 20-CV-04701.