Ashanti Goldfields Company Limited - Securities Class Action

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Copyright (c) 2001
Stanford Law School

Ashanti Goldfields Company Limited Summary: On March 31, 2006, the Court entered the Judgment dismissing the plaintiffs’ claims with prejudice. Plaintiffs’ counsel was awarded attorney fees and expenses, and lead plaintiff was awarded $7,219.00 from the settlement fund. On June 2, 2006, the Court entered the Order granting the motion for disbursement of funds.

By the Memorandum and Order entered on November 15, 2005, signed by U.S. District Judge David G. Trager, the settlement is declared fair and reasonable. Plaintiffs' claims are dismissed with prejudice. Counsel in this matter is granted attorneys fees in the form of 27.5% of the gross settlement fund and $1,377,825.93 in reasonable fees and expenses. Lead plaintiffs are also awarded $7,219 from the settlement fund.

According to a press release dated October 26, 2005, the terms of settlement in the US Class Action brought against the former Ashanti Goldfields Company Limited (AGC) have been concluded subject to court approval. The complaint inter-alia alleges non-disclosures and misstatements by AGC regarding its hedging programme. Pursuant to the settlement described in the Notice Of Proposed Settlement Of Class Action, Motion For Attorneys’ Fees and Settlement Fairness Hearing, a Settlement Fund consisting of $15,000,000 (US$) in cash, plus interest, has been established. The Court will hold a Settlement Fairness Hearing at 12:01 p.m. on November 2, 2005, at the United States District Court for the Eastern District of New York, 225 Cadman Plaza East, Brooklyn, New York 11201. At this hearing the Court will consider whether the settlement is fair, reasonable and adequate.

Additional cases were filed on behalf of investors. On September 8, 2000, lead plaintiffs and counsel were appointed. On October 27, 2000, a consolidated amended complaint was filed under the caption In re Ashanti Goldfields Securities Litigation, CV 00-0717 (DGT) (RML). Defendants filed a motion to dismiss on May 29, 2001. Plaintiffs filed an opposition to the motion to dismiss and defendants filed a reply in support of it. By a Memorandum and Order dated February 28, 2002, the Court granted in part and denied in part defendants’ motion to dismiss the complaint, finding that the plaintiffs had adequately shown that defendants’ misstatements were actionable under the federal securities laws and granting plaintiffs leave to file a second consolidated complaint. Plaintiffs filed their second consolidated amended complaint on March 7, 2002. On April 8, 2002, defendants answered the operative complaint, denying the violation of any laws and any wrongdoing. The case then proceeded with discovery. On April 25, 2003, plaintiffs filed motions for class certification and for permission to file a third complaint. Defendants opposed the motions. On March 30, 2004, the Court entered an order certifying this case to proceed as a class action. On April 26, 2004, plaintiffs filed a third consolidated amended complaint. On June 8, 2005, the plaintiffs filed a Settlement Agreement.

The original complaint alleges that Ashanti had issued a series of false and misleading statements about the company's hedging strategy that misrepresented and concealed the hedge book risks and Ashanti's exposure to gold price volatility. The attorneys said that after Ashanti announced on Oct. 5 that the hedge book had turned negative by more than $450 million and that the company would be required to meet massive margin calls that it did not have capital to meet, the price of Ashanti's stock fell 56 percent by the next day.

INDUSTRY CLASSIFICATION:
SIC Code: 1041
Sector: Basic Materials
Industry: Gold & Silver

COMPANY/ISSUER NAME:	Ashanti Goldfields Company Limited
COMPANY/ISSUER TICKER:	ASL
COMPANY WEBSITE:	http://www.ashantigold.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Jane Furman, et al. v. Ashanti Goldfields Company Limited, et al.

COURT: E.D. New York	DOCKET NUMBER: 00-CV-717
JUDGE NAME: Hon. David G. Trager
DATE FILED: 02/03/2000	SOURCE: Other
CLASS PERIOD START: 07/28/1999	CLASS PERIOD END: 10/05/1999
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Law Offices of Steven E. Cauley, P.A. 2200 Rodney Parham Road Suite 218, Little Rock, AR, 72212 (voice) 501.312.8500, (fax) , Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA) 600 West Broadway, 1800 One America Plaza, San Diego, CA, 92101 (voice) 800.449.4900, (fax) , support@milberg.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Docket
Type: Docket		Date on the document: 09/12/2000

REFERENCE COMPLAINT

In Re: Ashanti Goldfields Securities Litigation

COURT: E.D. New York	DOCKET NUMBER: 00-CV-717
JUDGE NAME: Hon. David G. Trager
DATE FILED: 04/26/2004	SOURCE: Business Wires
CLASS PERIOD START: 04/21/1997	CLASS PERIOD END: 10/05/1999
TYPE OF COMPLAINT: Third Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Cauley Bowman Carney & Williams, PLLC 11001 Executive Center Drive, Suite 200, Little Rock, AR, 72211 (voice) 501.312.8500, (fax) 888.551.9944, info@cauleybowman.com Milberg Weiss Bershad & Schulman LLP (New York) One Pennsylvania Plaza, 49th Floor, New York, NY, 10119 (voice) 212.594.5300, (fax) 212.868.1229, info@milbergweiss.com Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA) 600 West Broadway, 1800 One America Plaza, San Diego, CA, 92101 (voice) 800.449.4900, (fax) , support@milberg.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE REFERENCE COMPLAINT
Second Consolidated Amended Class Action Complaint
Type: Complaint		Date on the document: 03/07/2002
Third Consolidated Amended Class Action Complaint
Type: Complaint		Date on the document: 04/26/2004
Notice Of Pendency Of Class Action
Type: Notice		Date on the document: 08/05/2004
Stipulation and Agreement of Settlement
Type: Settlement		Date on the document: 06/01/2005
Notice Of Proposed Settlement Of Class Action, Motion For Attorneys’ Fees And Settlement Fairness Hearing
Type: Notice		Date on the document: 07/08/2005
Proof of Claim and Release
Type: Other		Date on the document: 07/08/2005
[Proposed] Order and Final Judgment
Type: Order		Date on the document: 07/08/2005
Memorandum and Order
Type: Order		Date on the document: 11/15/2005
U.S. District Court Civil Docket
Type: Docket		Date on the document: 06/02/2006

OTHER DOCUMENTS
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: The Jeffrey H. Kuch Trust And The Tyson Kuch Irrevocable Trust, et al. v. Ashanti Goldfields Company Limited, et al.
Type: Complaint		Date on the document: 04/19/2000

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