SOURCE: Kaplan Fox & Kilsheimer LLP

March 13, 2012 17:25 ET

Kaplan Fox and Rigrodsky & Long File Securities Class Action on Behalf of Purchasers of Nevsun Common Shares During the Period March 31, 2011 Through February 6, 2012

NEW YORK, NY--(Marketwire - Mar 13, 2012) - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) and Rigrodsky & Long, P.A. have filed a class action suit against Nevsun Resources Ltd. ("Nevsun" or "Company") (NYSE Amex: NSU) that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers of the common shares of Nevsun during the period March 31, 2011 through February 6, 2012, inclusive (the "Class").

The complaint alleges that throughout the Class Period the Company made materially false and misleading statements and failed to disclose that (a) Nevsun's mining at the Bisha Mine resulted in a material amount of waste rock, rather than gold ore; (b) that gold ore and gold from the Bisha Mine was materially less than the amount estimated by the Company's model and defendants knew or had reason to know this based on data routinely collected from the Bisha Mine throughout the Class Period; (c) that Nevsun was progressing through the ore body much more quickly than planned in order to maintain gold production at a rate that would not reveal to investors that the amount of gold at the Bisha Mine was materially less than the Company's model; (d) that the Company was aware that its model was materially defective because the actual amounts of gold mined at Bisha did not reconcile with the Company's model previously disseminated to the investing public; and (e) Nevsun materially overstated its gold reserves at the Bisha mine.

The complaint further alleges that on February 7, 2012, Nevsun shocked investors when, before the market opened, the Company issued a press release entitled "Nevsun 2012 Outlook Including Production Guidance," in which the Company disclosed i) that it had materially overstated gold reserves at the Bisha Mine by 30-35%; ii) that the amount of gold to be produced in 2012 would be about half of what Nevsun previously represented to investors; and iii) that it would restate its proven reserves. On February 7, 2012, following these disclosures, Nevsun's common shares declined in price by $1.94 per share on the NYSE Amex, from a closing price of $6.34 per share on February 6, 2012, to close at $4.40 per share on February 7, 2012, a decline of nearly 31% on heavy volume.

If you are a member of the proposed Class, you may move the court no later than 60 days after today to serve as a lead plaintiff for the proposed Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

The case was filed in the United States District Court for the Southern District of New York.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP and Rigrodsky & Long, P.A. For more information about the complaint, or if you would like to obtain a copy of the complaint, you may contact Kaplan Fox (www.kaplanfox.com) or Rigrodsky & Long (www.rigrodskylong.com).

Contact Information

  • If you have any questions about this Notice, the action, your rights, or your interests, please contact:

    Jeffrey P. Campisi
    KAPLAN FOX & KILSHEIMER LLP
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail: jcampisi@kaplanfox.com

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail: lking@kaplanfox.com

    Scott J. Farrell
    Timothy J. MacFall
    RIGRODSKY & LONG, P.A.
    825 East Gate Boulevard
    Suite 200
    Garden City, NY 11530
    (516) 683-3516
    Fax: (302) 654-7530
    Email: tjm@rigrodskylong.com