This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Gold Resource Corporation

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) ( http://www.rgrdlaw.com/cases/goldresource/) today announced that a class action has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of Gold Resource Corporation (“Gold Resource” or the “Company”) (NYSE:GORO) common stock during the period between January 30, 2012 and October 17, 2012 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/goldresource/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Gold Resource and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company, based in Colorado Springs, Colorado, mines, mills and produces metal concentrates that contain gold, silver, copper, lead and zinc at its El Aguila mining project in the southern state of Oaxaca, Mexico.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s operational status and financial projections. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that overly aggressive expansion of Gold Resource’s underground mining operations in the first quarter of 2012 had created operational difficulties in the mine, which were lowering mine production; (b) that Gold Resource was mining in lower grade zones of the deposit; (c) that significant operational efficiency improvements were required at the mine, including the need to upgrade electric power throughout the mine, expand ventilation and handle increased ground water the deeper the mine went, which limited the Company’s ability to mine higher grade stopes; (d) that decreases in long-hole stoping were forcing the Company to process more diluted development ore and mine from areas of the deposit with lower metal grades; (e) that as a result of the foregoing, tonnes from stoping, as a percentage of milled ore, had decreased from an estimated year-to-date high of 55% during the first quarter of 2012 to an estimated year-to-date low of 15% during the second quarter of 2012; and (f) that during the third quarter of 2012, a dispute had arisen between the Company and the buyer of its metal concentrates, with the buyer claiming net adjustments (reductions) to the Company’s provisional third quarter 2012 invoices.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG

Markets

DOW 17,841.98 -86.22 -0.48%
S&P 500 2,080.15 -9.31 -0.45%
NASDAQ 4,919.6440 -19.6830 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs