NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Golden Star Resources Ltd. ("Golden Star" or the "Company") of the June 1, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Golden Star stock or options between February 20, 2019 and July 30, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/GSS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to[email protected].
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Golden Star common stock between February 20, 2019 and July 30, 2019 (the "Class Period"). The case, Grobler v. Golden Star Resources Ltd. et al., No. 20-cv-03047 was filed on April 1, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing 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.
On July 31, 2019, Golden Star announced disappointing second quarter 2019 financial results whereby the Company was forced to materially cut its production guidance and increase its cash operating cost estimates. In doing so, the Company admitted that a laundry list of issues had negatively impacted its mines, including the use of insufficient geological and geotechnical data and poor drilling strategies and techniques, such as continued improper "blasting."
On this news, Golden Star's share price fell from $4.30 per share on July 30, 2019 to a closing price of $3.55 on July 31, 2019: a $0.75 or a 17.44% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Golden Star's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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