SAN DIEGO and VANCOUVER, British Columbia, Nov. 5, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Pretium Resources, Inc. (NYSE: PVG) ("Pretium") has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between January 19, 2011 and October 21, 2013 (the "Class Period").
Pretium Accused of Misleading Investors Regarding the Quality and Quantity of Its Gold Reserves
Shares of Pretium fell $2.07 per share, or approximately 30%, on October 9, 2013, after the company disclosed that Strathcona Mineral Services Ltd., one of the two firms the company had hired to evaluate the quality of its gold reserves at its Brucejack site, had resigned from the project. On October 22, 2013, Pretium further revealed that Strathcona had resigned from the project after concluding that no valid gold resources existed while also noting that all mineral reserves and future gold production from the VOK Zone of the Brucejack project were erroneous and misleading. On this news, Pretium shares fell an additional 28%, to close at $3.36 per share on October 22, 2013, representing a total 58% decline since October 9, 2013.
According to the complaint, defendants made false and/or misleading statements and failed to disclose that: (i) Pretium had not acquired credible evidence demonstrating the quantity and quality of gold reserve estimates it claimed during the Class Period; (ii) Snowden Group, one of the companies hired to provide analysis of the quantity and quality of the gold at the Brucejack project, was not using reliable methodology to evaluate the gold reserve estimates; (iii) Snowden and Strathcona did not agree on the methodology used to evaluate the gold reserve estimates and; (iv) the 2012 Mineral Resources prepared by Snowden did not accurately classify the mineral resources present as Measured, Indicated, and Inferred Resources.
Pretium Shareholders Are Encouraged To Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in Pretium and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/pretium-resources-inc.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP