SOURCE: Brower Piven, A Professional Corporation

August 12, 2008 14:21 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in NovaGold Resources, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the October 6, 2008 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - August 12, 2008) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of NovaGold Resources, Inc. ("NovaGold" or the "Company") (AMEX: NG) during the period between October 25, 2006 and November 23, 2007, inclusive (the "Class Period").

The complaint charges NovaGold and certain of its officers and directors with violations under the Securities Act of 1933 and the Securities Exchange Act of 1934. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than October 6, 2008 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/332-0030) to answer any questions you may have in that regard.

NovaGold is engaged in the business of exploration and development of mineral properties. The complaint alleges that throughout the Class Period, Defendants falsely portrayed NovaGold as a rapidly growing company moving from an exploration and development company to a gold and copper production company. The complaint further alleges that included in the materially false and misleading statements during the Class Period were those confirming the economic viability of the Company's Galore Creek project. After announcing one October 25, 2006 that development of the Galore Creek project would require capital costs of Cdn $2.2 billion, in April 2007, the Company raised hundreds of millions of dollars in a secondary stock offering. When, on November 26, 2007, the Company announced that it would suspend activities at Galore Creek based on the results of an updated feasibility study which estimated the capital costs for the Galore Creek project to be Cdn $5 billion, the value of the Company's shares declined.

If you have suffered a net loss for all transactions in NovaGold Resources, Inc. securities during the Class Period (including shares or possibly calls purchased during, but retained after, the Class Period or possibly put options sold but not covered until after the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-332-0030, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/332-0030
    Email Contact