Gold Resource Corp. (NYSE: GORO)
Hagens Berman Sobol Shapiro LLP (“Hagens Berman”) has filed a class-action securities lawsuit against Gold Resource Corporation ("GORO" or the "Company") (NYSE: GORO) alleging violations of the Securities Exchange Act of 1934 on behalf of purchasers of GORO common stock during the period from Jan. 30, 2012 through Nov. 8, 2012, (the "Class Period”) inclusive.
The case was filed in the United States District Court for the District of Colorado.
The complaint alleges that, during the Class Period, the defendants made materially false and misleading statements to investors in violation of the securities laws by misrepresenting and failing to disclose significant production problems at the Company’s El Aguila mining project in Oaxaca, Mexico.
The complaint further alleges that the defendants materially overstated the Company’s reported production statistics, revenues and net income during the first and second quarters of 2012 by improperly including “sales” of product that were invoiced, but not actually delivered to the Company’s buyers.
On July 19, 2012, the company announced preliminary production results for the second quarter of 2012, and, for the first time, disclosed some of the serious production problems that were plaguing the Company, the lawsuit states. On the news, GORO shares dropped more than 30 percent from $24.99 to close at $17.34 per share.
On Oct. 17, 2012, the defendants announced continuing production problems at the Company during the third quarter. The lawsuit claims this caused the Company’s stock to tumble again, down another 10 percent, from $20.15 per share to a close of $18.01 per share.
Finally, on Nov. 8, 2012, the Company shocked investors when it announced that:
- Investors should no longer rely on its previously issued financial statements for the quarters ended March 31, 2012 or June 30, 2012;
- The Company’s system of accounting internal controls had a “material weakness;”
- The March 31, 2012 and June 30, 2012 financial statements contained at least $3.7 million in improperly recognized income; and
- The March 31, 2012 and June 30, 2012 financial statements would require restatement. On the news, GORO shares lost another $0.50 per share to close at $16.48 on Nov. 9, 2012.
Investors who wish to serve as lead plaintiff in the case must move the court no later than Dec. 24, 2012. Shareholders who purchased or otherwise acquired GORO common stock between Jan. 30, 2012, and Nov. 8, 2012, inclusive, are encouraged to contact attorney Karl Barth at (206) 623-7292 or to contact the Hagens Berman legal team through e-mail at GORO@hbsslaw.com.
Any member of the proposed 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. Class members need not seek to become a lead plaintiff in order to share in any possible recovery.
The plaintiff in the case seeks to recover damages on behalf of the class and is represented by Hagens Berman Sobol Shapiro, LLP. Hagens Berman is a nationwide investor-protection law firm, with many years of experience prosecuting investor class actions and actions involving financial fraud.
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