Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Gold Resource Corp.
Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/goro) announces that a class action lawsuit has been filed 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 MKT: GORO) common stock during the period between January 30, 2012 and October 17, 2012 (the “Class Period”).
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/goro.
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.
If you are a member of the class, you may, no later than December 24, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/goro or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at email@example.com. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.