Class Action litigation has been filed in the United States District Court for the Southern District of New York against Barrick, along with certain officers and a Director of the Company, on behalf of investors who purchased or otherwise acquired Barrick securities between February 16, 2017 and April 24, 2017, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934.
Barrick is a gold and copper mining company that engages in exploration and mine development.
The class action alleges that on February 16, 2017, the Company held a conference call during which Defendant Jorge Palmes ("Palmes"), the Executive General Manager that oversaw Barrick's Veladero mine, acknowledged that "2016 was a very challenging year" for the Veladero mine due to pipe-related damage, but that the Company "completed a series of remedial works to prevent such an incident from occurring again." Defendant Palmes then provided guidance for Veladero production for 2017, stating "we expect increased production of 770,000 ounces to 830,000 at an all-in sustaining cost of $840 per ounce to $940 per ounce."
The complaints further allege that on March 28, 2017, a pipe at the Veladero mine ruptured, but that "[s]urprisingly. . . the Company reaffirmed its fiscal year guidance" and stated "[a]t this time, we do not anticipate a material impact to Veladero's 2017 production guidance."
On April 24, 2017, however, the Company issued a press release announcing a revision to its guidance, stating: "we now expect full-year production at Veladero of 630,000-730,000 ounces of gold, at a cost of sales of $740-$790 per ounce, and all-in sustaining costs of $890-$990 per ounce. . . . This compares to our original 2017 guidance of 770,000-830,000 ounces (100 percent basis), at a cost of sales of $750-$800 per ounce, and all-in sustaining costs of $840-$940 per ounce."
Following the April 24, 2017 news, Barrick's share price fell $2.15 per share, or 11.3%, to close at $16.89 per share on April 25, 2017.
The complaints allege that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose that (1) the pipes and safety systems at the Veladero mine were not robust enough to prevent spills; (2) as a result, Argentinian authorities would restrict the Veladero mine and require remedial work; (3) these developments would impact (and were impacting) the production capacity of the Veladero mine; (4) as such, the Company's Veladero mine production guidance and total gold production guidance were overstated; and (5) as a result of the foregoing, defendants' statements about Barrick's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you are a member of the proposed Class, you may move the Court by no later than July 10, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP