Investors who purchased common stock of Nevsun Resources Ltd. between March 31, 2011 and Feb. 6, 2012.
These investors may be able to participate in a class action lawsuit seeking compensation for monetary losses, interest and attorneys' fees.
Nevsun Resources Ltd.
It has been alleged that Nevsun issued false and misleading information in connection with its gold reserves in its Bisha Mine located in Eritrea.
The deadline to act as lead plaintiff in this case is May 14, 2012.
Note: We are no longer accepting claims regarding the Nevsun securities suit.
Did you purchase shares in Nevsun Resources Ltd. between March 31, 2011 and Feb. 6, 2012? If so, you may have legal recourse to collect compensation for damages. Allegations have surfaced that the company violated federal securities laws when it issued false and misleading information in connection with its gold reserves in its Bisha Mine in Eritrea. One class action lawsuit has already been filed in New York on behalf of investors, and more suits are expected to follow.
Allegations of Securities Law Violations
The class action complaint alleges that Nevsun violated federal securities laws. Specifically, the suit claims that the company knew but failed to disclose that mining efforts at its Bisha Mine were yielding a material amount of waste rock, rather than gold ore. Furthermore, Nevsun knew or should have known that gold ore and gold recovered from the Bisha Mine was materially less than the amount estimated by their models, according to the class action. It has also been alleged that the company was progressing through the ore body more quickly than expected to keep up gold production at a rate which would not tip off investors that the amount of gold at the mine was materially less than the company’s model. The company knew its model was materially defective and overstated its gold reserves at the Bisha Mine, the suit further claims. In Feb. 2012, the company announced that it had in fact overstated its gold reserves at the mine by 30 to 35% and cut its 2012 gold production forecast for the mine. Consequently, common stock in Nevsun dropped $1.94 per share, representing a 31% decline.
Nevsun Class Action Lawsuit
If you bought common stock in Nevsun between March 31, 2011 and Feb. 6, 2012, you may be able to serve as a lead plaintiff in a class action lawsuit seeking compensation from the company for damages resulting from its alleged securities violations. The lead plaintiff will act as a representative of other Nevsun investors who bought stock during this time period and will help in directing the litigation. Please Note: The time limit for serving as a lead plaintiff (May 14) has passed.