Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Pretium Resources, Inc.
November 20 2013 - 10:37AM
Business Wire
Cohen Milstein Sellers & Toll PLLC is conducting an
investigation to determine whether Pretium Resources, Inc.
(“Pretium” or the “Company”) and certain of its officers and
directors made false and misleading statements and/or omissions in
violation of Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934.
A class action lawsuit was filed in the U.S. District Court for
the Southern District of New York by another law firm on behalf of
purchasers of Pretium securities (NYSE: PVG) between January 19,
2011 and October 21, 2013, inclusive (the “Class Period”),
including those who purchased in a May 3, 2012 follow-on
offering.
The complaint alleges that Pretium and certain of its officers
and directors (“Defendants”) misrepresented and/or failed to
disclose that: (1) Pretium had not acquired credible evidence
demonstrating the quantity or quality of gold reserve estimates
they provided to investors; (2) Snowden Mining Industry Consultants
(“Snowden”), one of the firms the Company had hired to provide an
independent analysis of the quantity and quality of the gold
reserves from its Brucejack project, was not using a reliable
method to calculate its reserve estimates; (3) Strathcona Mineral
Services Ltd. (“Strathcona”), the Company’s “Qualified Person”
tasked with overseeing and reporting on a bulk sampling program
which was designed to test the mineral content of the Brucejack
project, did not agree with Snowden on the methodology to be used
to calculate the gold reserve estimates; (4) contrary to Pretium’s
Class Period statements, the April, September and November 2012
Mineral Resource estimates for the West Zone and Valley of the
Kings prepared by Snowden did not accurately classify the mineral
reserves present; and (5) as a result of the foregoing, Pretium’s
gold resource estimates reported during the Class Period were not
reliable.
On October 9, 2013, Pretium announced that Strathcona had
resigned from the Brucejack project. The price of Pretium shares
fell from $6.77 to $4.70 on October 9. The Company offered no
explanation for Strathcona’s resignation at that time.
Investors subsequently learned that Strathcona had clashed with
Snowden about how to evaluate the bulk sample, and that the two
firms’ methodologies had led to widely divergent estimates of both
the amount and quality of the gold deposits at Brucejack and
Pretium confirmed that Strathcona’s evaluation of the bulk sample
revealed much less gold than the approach used by Snowden. On
October 22, 2013, the Company disclosed details concerning
Strathcona’s resignation, including parts of Strathcona's
resignation letter stating: “There are no valid gold mineral
resources for the [Valley of the Kings] zone, and without mineral
resources there can be no mineral reserves, and without mineral
reserves there can be no basis for a feasibility study.”
Strathcona’s resignation letter went on to describe Pretium’s
statements about probable mineral reserves and future gold
production from the Brucejack project as “erroneous and
misleading.” The price of Pretium shares fell from $4.63 to $3.36
on October 22.
Cohen Milstein encourages all investors who purchased Pretium
securities between January 19, 2011 and October 21, 2013,
inclusive, including those who purchased in a May 3, 2012 follow-on
offering, or former employees with information concerning this
matter to contact the firm.
If you are a Pretium shareholder and would like to discuss your
right to recover for your economic loss, you may, without any cost
or obligation, call Cohen Milstein’s Managing Partner, Steven J.
Toll at (888) 240-0775 or (202) 408-4600, or email him at
stoll@cohenmilstein.com. If you wish to serve as lead plaintiff,
you must move the Court no later than December 24, 2013 to request
that the Court appoint you as lead plaintiff. A lead plaintiff is a
representative party acting on behalf of other class members in
directing the litigation. To be appointed lead plaintiff, the Court
must decide that your claim is typical of the claims of other class
members, and that you will adequately represent the class. Your
share in any recovery will not be enhanced or diminished by the
decision whether or not to serve as a lead plaintiff. Any member of
the proposed class may retain Cohen Milstein Sellers & Toll
PLLC or other attorneys to serve as your counsel in this action, or
you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant
experience in prosecuting investor class actions and actions
involving securities fraud. The firm has offices in Washington,
D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and
is active in major litigation pending in federal and state courts
throughout the nation.
The firm’s reputation for excellence has repeatedly been
recognized by courts which have appointed the firm to lead
positions in complex multi-district or consolidated litigation.
Cohen Milstein Sellers & Toll PLLC has taken a lead role in
numerous important cases on behalf of defrauded investors, and has
been responsible for a number of outstanding recoveries which, in
the aggregate, total over one billion dollars. Prior results do not
guarantee a similar outcome. For more information visit
www.cohenmilstein.com.
If you have any questions about this notice or the action, or
with regard to your rights, please contact either of the
following:
Steven J. Toll, Esq.Jordan HillCohen Milstein Sellers & Toll
PLLC1100 New York Avenue, N.W.West Tower, Suite 500Washington, D.C.
20005Telephone: (888) 240-0775 or (202) 408-4600Email:
stoll@cohenmilstein.com; jhill@cohenmilstein.com
Attorney Advertising
Cohen Milstein Sellers & Toll PLLCSteven J. Toll,
Esq.888-240-0775 or 202-408-4600stoll@cohenmilstein.comorJordan
Hill888-240-0775 or 202-408-4600jhill@cohenmilstein.com
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