Northern Dynasty Minerals Ltd. (Northern Dynasty) is a Canada-based mineral exploration company. The Company is focused on the exploration and development of the Pebble Project, a copper, gold, molybdenum, silver, rhenium mineral project located in southwest Alaska.
According to the law firm press release, the lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Northern Dynasty’s Pebble project is commercially unviable; (2) Northern Dynasty’s Pebble project had a negative present value; and (3) as a result, Defendants’ statements about Northern Dynasty’s business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times. On February 14, 2017, Kerrisdale Capital Management published a report asserting that Northern Dynasty’s Pebble Project is commercially unviable and Northern Dynasty has spent years trying to conceal from public that its Pebble project had a negative present value. On this news, shares of Northern Dynasty fell $0.68 per share or over 21% to close at $2.50 per share on February 14, 2017, damaging investors.
On June 6, 2017, the Court issued an Order appointing Lead Plaintiff and Lead Counsel. Lead Plaintiffs filed an amended Complaint on September 12. A corrected version of this complaint was filed on October 11.
Defendants filed a Motion to Dismiss the amended Complaint on December 11. On April 30, 2018, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to file an amended Complaint. Plaintiffs filed a second amended Complaint on June 18. Defendants filed a Motion to Dismiss the second amended Complaint on August 24. On February 22, 2019, the Court granted Defendants' Motion to Dismiss. Lead Plaintiffs filed a Notice appealing the Court's Dismissal Order on March 21. On May 8, 2020, the Court of Appeals affirmed the District Court's decision.