According to a press release dated February 16, 2012, the complaint charges the Company and certain of its officers and directors with violations of the Exchange Act.
The complaint alleges that, throughout the Class Period, defendants issued materially false and misleading statement regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that drilling results at on of the Company’s properties had exhibited high amounts of low-grade ores and that because of this the Company would need to modify its mining processes to help minimize operating costs and maximize profitability; (b) that, as a result of the foregoing circumstances, applicable accounting standards required the Company to record an impairment in the value of goodwill that the Company attributed to the property; (c) that the Company’s financial statements were not fairly presented in conformity with International Financial Reporting Standards and were materially false and misleading; and (d) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its business prospects and the property during the Class Period.
On January 16, 2012, the Company issued a press release announcing its preliminary 2011 results and 2012 outlook. The press release noted that the Company’s three major growth projects at several of its properties would require significant capital expenditures and that as a result of the Company’s increased understanding of the property’s orebody, the Company had elected to conduct a comprehensive capital and project optimization process to efficiently advance development of the project and generate enhanced returns on capital. The press release also disclosed that “[i]n view of the Company’s evolving understanding of [the property’s] project parameters, and market conditions, including industry-wide increases in capital and operating costs, the Company expects to record a material non-cash accounting charge, primarily relating to the goodwill recorded for the [the property’s] mine,” which totaled $4.6 billion at September 30, 2011. In response to the Company’s announcement, the price of its common stock plummeted nearly 19%, from $12.65 per share on January 13, 2012 to $10.27 on January 17, 2012.
On May 31, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel.
On July 23, 2012, the Plaintiffs filed an amended complaint.
On March 22, 2013, the Court issued an Order granting in part and denying in part Defendant's motion to dismiss.
On March 26, 2015, the parties filed a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on May 27. On October 15, the Court granted final approval of the Settlement and dismissed this case.