GATO 8-DAY ALERT: Hagens Berman, National Trial Attorneys, Encourages Gatos Silver (GATO) Investors with $100K+ Losses to Contact Firm's Attorneys, Application Deadline Approaching in Securities Class Action
San Francisco, California--(Newsfile Corp. - April 17, 2022) - Hagens Berman urges Gatos Silver, Inc. (NYSE: GATO) investors with significant losses to submit your losses now. A securities class action has been filed and certain investors who purchased shares in Gatos Silver's Oct. 2020 IPO and/or on the open market afterwards may have valuable claims.
Gatos Silver, Inc. (GATO) Securities Class Action:
The litigation focuses on Gatos' statements concerning its Cerro Los Gatos ("CLG") mine located in Chihuahua, Mexico, including the Company's estimates in its July 1, 2020 Technical Report ("2020 Technical Report") that the CLG deposit "contains approximately 9.6 million diluted tonnes of proven and probable mineral reserves."
According to the complaint, defendants made materially false and misleading statements and failed to disclose material adverse facts, including: (1) that the 2020 Technical Report contained errors; and (2) that, among other things, the GLG mineral reserves had been overestimated by as much as 50%.
The truth came to light on Jan. 25, 2022, when Gatos disclosed that during a resource and reserve update process, which included a detailed reconciliation of recent production performance, the Company concluded that there were errors in the 2020 Technical Report, as well as indications that there is an overestimation in the existing resource model. As a result, the Company estimated a potential reduction of the metal content of CLG mineral reserve ranging from 30% to 50% of the metal content and warned that the mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon.
This revelation drove the price of Gatos shares as much as 70% lower on Jan. 26, 2022.
"We're focused on investors' losses and proving defendants knew the 2020 Technical Report was inaccurate at the time of the IPO and thereafter," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Gatos and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Gatos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GATO@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/120654