According to the Complaint, Gatos Silver, Inc. focuses on the production, development and exploration of silver- and zinc-rich mineral deposits. Its primary efforts are the operation of the Los Gatos Joint Venture (“LGJV”) in Chihuahua, Mexico with Dowa Metals and Mining Co., Ltd. In addition to commercializing lead and zinc concentrates, the Company performs additional definition drilling to define and expand mineralization of the Cerro Los Gatos deposit (“CLG”).

Plaintiff brings this action on behalf of a class, consisting of all persons and entities that purchased or otherwise acquired Gatos: (a) common stock pursuant and/or traceable to the Registration Statement issued in connection with the Company’s initial public offering conducted on or about October 28, 2020; and/or (b) securities between October 28, 2020 and January 25, 2022, inclusive, and who were damaged thereby.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the technical report for Gatos’s primary mine, the Cerro Los Gatos deposit, contained certain errors; (2) that, among other things, the mineral reserves had been overestimated by as much as 50%; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On June 3, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on August 15.

On July 13, 2023, the parties entered into a Stipulation and Agreement of Settlement. On July 17, the Court denied the pending Motion to Dismiss the amended Complaint as moot in light of the proposed Settlement.

The Court granted preliminary approval of the Settlement on February 29, 2024. On October 15, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.