Robbins Umeda LLP Announces an Investigation of Gold Resource Corporation
Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Gold Resource Corporation (NYSE: GORO). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at 800-350-6003, email@example.com, or via the shareholder information form on the firm's website.
Robbins Umeda LLP is investigating whether officers and directors of Gold Resource breached their fiduciary duties to shareholders by permitting and failing to correct insufficient controls and improper procedures that led to the disclosure of false and/or misleading statements overstating the success of its mining operations. On July 19, 2012, after the close of trading, Gold Resource issued a press release announcing that preliminary production results for the second quarter ended June 30, 2012, were lower than expected, forcing the Company to slash its fiscal years 2012 and 2013 guidance. Despite these results, Gold Resource said that its actions to create increased development on mine veins had "put the company in a more sustainable production position for the second half of 2012."
On October 17, 2012, Gold Resource issued a press release after the close of trading. In this press release, Gold Resource disclosed that the company's third quarter 2012, fiscal year 2012, and fiscal year 2013 earnings would fall substantially short of what investment analysts had been led to expect. The press release revealed a dispute with a buyer of Gold Resource's metal concentrates that resulted in the buyer claiming net adjustments to Gold Resource's invoices. This news caused Gold Resource's stock price to fall from its October 17, 2012, closing price of $20.15 per share to trading as low as $18.01 per share on October 18, 2012.
Robbins Umeda LLP highlights concerned Gold Resource shareholders have several potential options available to them. Remedies commonly sought in the firm's actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/gold-resource-corporation/
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