According to a press release dated December 9, 2008, the complaint alleges that the defendants made several statements during the Class Period about the Company's Las Cristinas Gold Project located in Sifontes, Venezuela, and that the issuance of the required Venezuelan government permit in connection with that project was imminent. The complaint alleges, however, that during the Class Period defendants did not have a reasonable expectation that the Company would receive the required permit and that on April 30, 2008, the permit was, in fact, denied. On news that the permit was denied, the complaint alleges, the Company's stock fell roughly from a closing price of $1.68 on April 29, 2008, to a closing price of $0.91on April 30, 2008, on heavy volume.
On April 07, 2009, an order was granted appointing that the Colace Group as Lead Plaintiffs. The Colace Group's selection of Vianale & Vianale LLP and Sarraf Gentile LLP as Co-Lead Counsel was also approved.
On June 12, 2009, an amended class action complaint was filed in this action by the Colace Group. The defendants responded by filing a motion to dismiss on August 14, 2009.
According to the Opinion and Order signed by Judge Sidney H. Stein on March 28, 2011, Defendants have moved to dismiss the amended complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). Because the amended complaint fails to plead facts sufficient to raise a strong inference of scienter on the part of defendants, that motion is granted and the complaint is dismissed. For the reasons set forth above, the Complaint is dismissed in its entirety and without prejudice. If they believe they have reason to do so in good faith, plaintiffs may file a second amended complaint within twenty-one days of the entry of this order.
On April 21, 2011, the plaintiff filed a Notice of Appeal as to the March 28th Order. The appeal is currently pending in the Second Circuit Court of Appeals. According to the Order entered on April 25, 2011, the plaintiffs did not file a second amended complaint, so action is now dismissed with prejudice. On June 7, 2011, the Court entered the Mandate from the Second Circuit Court of Appeals. The appeal was dismissed.