2022-04-17 | NYSE:GATO | Press release
San Francisco, Calif.–(Newsfile Corp. – April 17, 2022) – Hagens Berman urges Gatos Silver, Inc. (NYSE:GATO) investors with significant losses for submit your losses now. A securities class action lawsuit has been filed and some investors who purchased shares in the Gatos Silver IPO in October 2020 and/or in the open market thereafter may have some interesting claims.
Class period: 28 Oct 2020 – 25 Jan 2022
Lead Applicant Deadline: April 25, 2022
Contact a lawyer now:GATO@hbsslaw.com
Gatos Silver, Inc. (GATO) Class Action:
The dispute relates to statements by Gatos regarding its Cerro Los Gatos (“CLG”) mine located in Chihuahua, Mexico, including the Company’s estimates in its technical report dated July 1, 2020 (“2020 Technical Report”) that the CLG deposit “contains approximately 9.6 million diluted tonnes of proven and probable mineral reserves.”
According to the complaint, the defendants made materially false and misleading statements and failed to disclose material adverse facts, including: (1) that the 2020 Technical Report contained errors; and (2) that, among other things, GLG’s mineral reserves had been overestimated by up to 50%.
The truth came to light on January 25, 2022, when Gatos revealed that during a resource and reserve update process, which included a detailed reconciliation of recent production performance, the company concluded that there were errors in the 2020 technical report, as well as indicate that there is an overestimation in the existing resource model. Accordingly, the Company has estimated a potential reduction in the metal grade of CLG’s Mineral Reserves ranging from 30% to 50% of the metal grade and cautioned that resource and reserve estimates should not be relied upon. minerals in the 2020 technical report.
This revelation sent Gatos’ stock price plummeting by as much as 70% on January 26, 2022.
“We are focused on investor losses and proving that defendants knew the 2020 technical report was inaccurate at the time of the IPO and thereafter,” said Reed Kathrein, the Hagens Berman partner who leads the ‘investigation.
If you have invested in Gatos and are suffering significant losses, or have knowledge that may help the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: People with nonpublic information about Gatos should consider their options to help with the investigation or take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30% of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GATO@hbsslaw.com.
# # #
About Hagens Berman
Hagens Berman is a global complex plaintiffs’ rights litigation law firm, focusing on corporate liability through class action law. The firm is home to a strong securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases that achieve real results for those harmed by negligence and fraud. of business. To learn more about the company and its successes, visit hbsslaw.com. Follow the company for updates and news on @ClassActionLaw.
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/120654