Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/pretium/) today announced that a class action has been commenced 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, including purchasers in Pretium’s May 3, 2012 follow-on public stock offering at $14.50 per share (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than December 24, 2013. 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 firstname.lastname@example.org. 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/pretium/. 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 Pretium and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Pretium is a Vancouver, British Columbia, Canada-based mining company engaged in the exploration and development of precious metal resource properties, including gold, copper and silver.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects, including failing to disclose that: (a) Pretium had not acquired credible evidence demonstrating the quantity or quality of gold reserve estimates it claimed during the Class Period; (b) one of the firms Pretium had hired to provide independent analysis of the quantity and quality of the gold reserves at its all-important Brucejack Project during the Class Period, Snowden Mining Industry Consultants (“Snowden”), was not using a reliable methodology to evaluate its gold reserve estimates; (c) Snowden and Strathcona Mineral Services Ltd. (“Strathcona”) – one of Canada’s most highly-regarded teams of geologists, and one of the two firms the Company had hired to evaluate the quality of its gold reserves at Brucejack (along with Snowden) – did not agree on the methodology to be used to evaluate Pretium’s gold reserve estimates; (d) 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 (e) as a result of the foregoing, Pretium’s gold estimates reported during the Class Period were not as reliable it had led the market to believe.
On October 9, 2013, Pretium issued a press release disclosing that Strathcona had resigned from the Brucejack Project. The complaint alleges that this disclosure sent the price of the Company’s stock into a tailspin, since investors presumed that the resignation of the firm analyzing the bulk sample meant that the bulk sample’s quality was problematic or that there may have been disagreements between Strathcona’s methods and Pretium’s. Despite the positive spin Pretium attempted to place on this disclosure, the price of Pretium securities, which had traded over $18 per share during the Class Period, plummeted approximately 30% on October 9, 2013.
Then on October 11, 2013, the Company’s stock price fell another 28% after Pretium disclosed that, in reality, Strathcona had resigned after stating it had found “no valid gold” resources, and had concluded that Pretium’s statements about probable mineral reserves and future gold production from the VOK Zone of Brucejack were “erroneous and misleading.”
Finally, the complaint alleges that during the Class Period, with the price of Pretium securities artificially inflated on both the U.S. and Canadian exchanges as a result of defendants’ false and misleading statements, Pretium and its controlling shareholder, Silver Standard Resources Inc., cashed out, selling more than $580 million of Pretium securities through a series of private and public offerings conducted in both the United States and Canada.
Plaintiff seeks to recover damages on behalf of all purchasers of Pretium securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
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