Hagens Berman Sobol Shapiro LLP (“Hagens Berman”) today announced the filing of a class-action securities lawsuit against Gold Resource Corporation ("GORO" or the "Company") (NYSE:GORO) alleging violations of the Securities Exchange Act of 1934 on behalf of purchasers of GORO common stock during the period from Jan. 30, 2012 through Nov. 8, 2012, (the "Class Period”) inclusive.
The case was filed in the United States District Court for the District of Colorado. A copy of the complaint may be obtained from Hagens Berman or from the court and is available on Hagens Berman’s website at
The complaint alleges that, during the Class Period, the defendants made materially false and misleading statements to investors in violation of the securities laws by misrepresenting and failing to disclose significant production problems at the Company’s
mining project in Oaxaca, Mexico.
The complaint further alleges that the defendants materially overstated the Company’s reported production statistics, revenues and net income during the first and second quarters of 2012 by improperly including “sales” of product that were invoiced, but not actually delivered to the Company’s buyers.
On July 19, 2012, the company announced preliminary production results for the second quarter of 2012, and, for the first time, disclosed some of the serious production problems that were plaguing the Company, the lawsuit states. On the news, GORO shares dropped more than 30 percent from $24.99 to close at $17.34 per share.
On Oct. 17, 2012, the Defendants announced continuing production problems at the Company during the third quarter. The lawsuit claims this caused the Company’s stock to tumble again, down another 10 percent, from $20.15 per share to a close of $18.01 per share.
Finally, on Nov. 8, 2012, the Company shocked investors when it announced that:
1. Investors should no longer rely on its previously issued financial statements for the quarters ended March 31, 2012 or June 30, 2012;