SOURCE: Pretium Resources, Inc.
WASHINGTON, DC--(Marketwired - Oct 30, 2013) - Klafter Olsen & Lesser LLP ("KOL") announces that a securities fraud class action complaint has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Pretium Resources Inc. ("Pretium") (NYSE: PVG) securities during the period between January 19, 2011 and October 21, 2013, inclusive (the "Class Period"). Pretium is a Vancouver, British Columbia, Canada-based mining company engaged in the exploration and development of precious metal resources in the Americas. If you are a shareholder who purchased Pretium securities during the Class Period, you have until December 24, 2013 to ask the Court to appoint you as Lead Plaintiff for the class.
The complaint charges Pretium and certain of its officers and directors with violations of the Securities Exchange Act of 1934 in connection with defendants' issuance of materially false and misleading statements regarding the Company's financial performance and future prospects. Specifically, the complaint alleges that defendants failed to disclose that: (i) Pretium did not have credible evidence regarding its gold reserve estimates it claimed during the Class Period; (ii) one of the firms Pretium had hired to provide independent analysis of its gold reserves at Brucejack Project, Snowden Mining Industry Consultants ("Snowden"), was not using a reliable methodology to evaluate its gold reserve estimates; (iii) Snowden and Strathcona Mineral Services Ltd. ("Strathcona"), the other geology firm hired by the Company to evaluate its gold reserves at Brucejack, did not agree on the methodology to be used to evaluate Pretium's gold reserves; (iv) contrary to Pretium's statements during the Class Period, its 2012 Mineral Resource estimates prepared by Snowden did not accurately classify the mineral resources present as Measured, Indicated and Inferred Resources; and (v) as a result of the foregoing, Pretium's gold estimates reported during the Class Period were materially false and misleading.
On October 9, 2013, Pretium issued a press release disclosing that Strathcona had resigned from the Brucejack Project. Following that announcement, the price of Pretium securities plummeted over 30% on October 9, 2013 on extremely heavy volume. Then, on October 22, 2013, the Company further reported that Strathcona had resigned after a dispute with the company over sampling methods, and had concluded that "statements included in all recent press releases [by Pretium] about probable mineral reserves and future gold production [from the Valley of the Kings zone] over a 22-year mine life are erroneous and misleading." On this news, Pretium shares declined $1.27 per share or over 27%, to close at $3.36 per share on October 22, 2013. Finally, the complaint alleges that during the Class Period, Pretium and its controlling shareholder, Silver Standard Resources Inc., sold more than $580 million of Pretium securities at artificially inflated prices as a result of defendants' material misrepresentations.
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