On February 20, 2007, the Court entered the Order directing the Clerk of Court to dismiss the Consolidated Amended Complaint in this action and to closed this case and remove it from the Court's list of pending case as a separate action, subject to its reopening in the event within the time provided for the January 31, 2007 the plaintiffs file an amended complaint. On February 21, 2007, the Court entered the Judgment closing the case.
On September 16, 2005, the Court entered the Order consolidating the actions and appointing lead plaintiffs and appointing lead counsel. On February 27, 2006, the plaintiffs filed a Consolidated Amended Class Action Complaint, and on May 30, 2006, the defendants filed a motion to dismiss the Consolidated Amended Complaint.
Several purported shareholder class action lawsuits have been filed against DRDGOLD Limited and certain of its present and former executive officers alleging that defendants violated federal securities laws. Specifically, defendants made numerous statements regarding: (i) the successful restructuring of the Company's North West Operations in South America; (ii) the Company's ability to reduce the negative impact of the increasing value of the South African Rand versus the U.S. Dollar; and (iii) the increasing strength of the Company's balance sheet. In truth, the Company's problems with its North West Operations were never fully resolved and resulted in the Company being forced to record an impairment charge for the full value of its mining assets there. Despite representations to the contrary, DRDGOLD continued to be negatively impacted by the increasing value of the South African Rand. Further, these problems resulted in the Company being forced to announce that it might not be able to operate as a going concern. When this information was belatedly disclosed to the public, shares of DRDGOLD fell more than 25%.