Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Gold Resource Corporation
Robbins
Geller Rudman & Dowd LLP ('Robbins Geller?) (http://www.rgrdlaw.com/cases/goldresource/)
today announced that a class action has been commenced in the United
States District Court for the District of Colorado on behalf of
purchasers of Gold Resource Corporation ('Gold Resource? or the
'Company?) (NYSE:GORO) common stock during the period between January
30, 2012 and October 17, 2012 (the 'Class Period?).
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff′s counsel, Samuel
H. Rudman or David
A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at djr@rgrdlaw.com. If
you are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/goldresource/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges Gold Resource and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. The
Company, based in Colorado Springs, Colorado, mines, mills and produces
metal concentrates that contain gold, silver, copper, lead and zinc at
its El Aguila mining project in the southern state of Oaxaca,
Mexico.
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company′s
operational status and financial projections. Specifically, defendants
misrepresented and/or failed to disclose the following adverse facts:
(a) that overly aggressive expansion of Gold Resource′s underground
mining operations in the first quarter of 2012 had created operational
difficulties in the mine, which were lowering mine production; (b) that
Gold Resource was mining in lower grade zones of the deposit; (c) that
significant operational efficiency improvements were required at the
mine, including the need to upgrade electric power throughout the mine,
expand ventilation and handle increased ground water the deeper the mine
went, which limited the Company′s ability to mine higher grade stopes;
(d) that decreases in long-hole stoping were forcing the Company to
process more diluted development ore and mine from areas of the deposit
with lower metal grades; (e) that as a result of the foregoing, tonnes
from stoping, as a percentage of milled ore, had decreased from an
estimated year-to-date high of 55% during the first quarter of 2012 to
an estimated year-to-date low of 15% during the second quarter of 2012;
and (f) that during the third quarter of 2012, a dispute had arisen
between the Company and the buyer of its metal concentrates, with the
buyer claiming net adjustments (reductions) to the Company′s provisional
third quarter 2012 invoices.
On July 19, 2012, Gold Resource announced preliminary production results
for the second quarter ended June 30, 2012, stating that the Company′s
second quarter production was lower than expected and the Company was
dramatically slashing guidance for fiscal years 2012 and 2013. In
response to these revelations, shares of the Company′s common stock fell
from its July 19, 2012 closing price of $24.99 per share to $17.34 per
share.
Then, on October 17, 2012, Gold Resource again shocked the market
announcing preliminary production results for the third quarter ended
September 30, 2012, reporting additional reasons for the Company′s now
lower than expected third quarter 2012 results, including, but not
limited to, a dispute with the buyer of the Company′s metal concentrates
resulting in the buyer claiming net adjustments (reductions) to Gold
Resources′ invoices. In response to the October 17, 2012 press release,
the Company′s common stock fell from its October 17, 2012 closing price
of $20.15 per share to $18.01 per share on October 18, 2012, on
extremely high volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Gold
Resource common stock during the Class Period (the 'Class?). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in nine offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries and has been ranked number one in the number of shareholder
class action recoveries in MSCI′s Top SCAS 50 every year since
2003. According to Cornerstone Research, the firm′s recoveries have
averaged 35% above the median for all firms over the past seven years
(2005-2011). Please visit http://www.rgrdlaw.com
for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman / David A.
Rosenfeld
800-449-4900
djr@rgrdlaw.com
