NEW YORK, July 9, 2020 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of NovaGold Resources Inc. ("NovaGold" or the "Company") (NYSE: NG). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether NovaGold and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 28, 2020, J. Capital Research ("J. Capital") published a report alleging that "NovaGold's management team has systematically misled investors" about the Company's Donlin gold-mining project, "a deposit so remote and technologically challenging that the mine will never be built." J. Capital criticized NovaGold for using "custom metrics designed to deceive," which included, among other representations, that "the deposit will require $6.7 bln in capital, [when] the feasibility study clearly shows this number is $8 bln." J. Capital also contended that "[t]he proposed natural gas pipeline central to powering the project is dead on arrival," quoting an engineer who worked on costing the pipeline as stating that he "doesn't know of any engineering company that has the experience to build such a complex pipeline."
On this news, NovaGold's stock price fell $0.94 per share, or 8.83%, to close at $9.71 per share on May 28, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP