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65% drop in Barrick Gold shares prompts fraud allegations

Peter Kennedy Peter Kennedy, Stockhouse
2 Comments| July 5, 2013


A U.S. law firm said it is investigating potential securities fraud at Barrick Gold Corp. (TSX: T.ABX, Stock Forum) (NYSE: ABX, Stock Forum).

Faruqi & Faruqi LLP said in a press release the investigation focuses on whether the company and its executives violated securities laws with respect to disclosures concerning business, operational, and compliance policies.

“Specifically, the investigation focuses on whether Barrick omitted material information regarding the cost and environmental impact of the company’s Pascua-Lama project, which is located on the border between Argentina and Chile.

On May 24, 2013, the company announced that it had received a resolution from Chile’s Superintendence of the Environment, suspending the Pascua-Lama project over environmental problems, imposing a fine of approximately $16 million.

Following this news, Barrick’s stock price dropped nearly 65% from its Class Period high.

These allegations remain unproven and Barrick and its officials are assumed to be innocent until such times as the allegations are tested in a court of law.

Faruqi & Faruqi said it encourages investors who suffered losses in excess of $100,000 investing in Barrick Gold to get in touch with them.

Barrick Gold Corp. (TSX: T.ABX) fell 6.6% Friday to $14.29 on volume of 4.2 million shares, leaving a market cap of $14.3 billion, based on over one billion shares outstanding. The 52-week range is $42.08 and $15.10.
 


Tags: GOLD SHARES 52-WEEK COMPANY

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heyoou1
I gotta say that these mining CEO's have no shame. They don't care about shareholders and will hide and say anything to get your hard-earned money while their stock crumbles to no end while paying themselves big bonuses. What a corrupt world we live in.
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July 5, 2013
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2stereo
It might have something to do with the drop in Gold. Is everybody getting stupider by the day or is it just me?
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July 5, 2013
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