Barrick Gold (TSX:ABX, Stock Forum), a Toronto-based gold and copper producer engaged in exploration and mine development, was called to the carpet today with the launch of a multi-billion dollar class action suit commenced by Koskie Minsky LLP and Sutts, Strosberg LLP against the corporation and certain of its officers.
According to the news release, the claim was made on behalf of purchasers of Barrick securities from May 7, 2009 and November 1, 2013. Allegations state that the company's public disclosure misrepresented the progress and feasibility of its Pascua-Lama project located in Chile and Argentina.
A Chilean appeals court ordered Barrick to halt construction at the Pascua-Lama project citing environmental violations on April 10, 2013, after which the company announced an after-tax impairment charge of $4.5 to $5.5 billion and stated it was indefinitely suspending operations at Pascua-Lama. Investors are alleged to have lost billions of dollars as a result of the company's misrepresentation and failures to disclose.
Jay Strosberg of Sutts, Strosberg LLP commented, “Full, true and plain disclosure is the lifeblood of our capital markets and this action raises questions about Barrick's disclosure practices regarding its massive Pascua-Lama project.”
Kirk Baert of Koskie Minsky LLP added, “the plaintiff, on behalf of Barrick's investors, seeks an explanation and compensation for the significant losses he and other investors suffered as the challenges regarding the Pascua-Lama project have been revealed.”
Barrick Gold was in the news recently when the company announced it wanted the Newmont merger talks to resume.
Shares were up 1.40% on the news to $19.52 per share.
Currently there are 1.2b outstanding shares with a market cap of $22.7 billion.