GATO ALERT: Robbins Geller Rudman & Dowd LLP Announces that Gatos Silver, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
SAN DIEGO, March 1, 2022 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Gatos Silver, Inc. (NYSE: GATO): (a) common stock pursuant and/or traceable to the Registration Statement issued in connection with Gatos Silver's initial public offering (the "IPO") conducted on or about October 28, 2020; and/or (b) securities between October 28, 2020 and January 25, 2022, both dates inclusive (the "Class Period") have until April 25, 2022 to seek appointment as lead plaintiff. Commenced on February 22, 2022 in the District of Colorado, the Gatos Silver class action lawsuit – captioned Bilinsky v. Gatos Silver, Inc., No. 22-cv-00453 – charges Gatos Silver, certain of its top executives and directors, as well as the underwriters of the IPO with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.
If you suffered significant losses and wish to serve as lead plaintiff of the Gatos Silver class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. Lead plaintiff motions for the Gatos Silver class action lawsuit must be filed with the court no later than April 25, 2022.
CASE ALLEGATIONS: Gatos Silver focuses on the production, development, and exploration of silver- and zinc-rich mineral deposits. Gatos Silver's primary efforts are the operation of the Los Gatos Joint Venture in Chihuahua, Mexico with Dowa Metals and Mining Co., Ltd. In addition to commercializing lead and zinc concentrates, Gatos Silver performs additional definition drilling to define and expand mineralization of the Cerro Los Gatos deposit.
In the IPO, Gatos Silver sold approximately 24,644,500 shares of common stock at a price of $7.00 per share. Gatos Silver received net proceeds of approximately $156.1 million from the IPO, which were purportedly to be used to retire a portion of the Los Gatos Working Capital Facility, repurchase an 18.5% interest in the Los Gatos Joint Venture, fund near-term debt service needs, conduct a feasibility study for a 3,000 tpd production rate expansion of the Cerro Los Gatos deposit mine, and working capital and general corporate purposes.
The Gatos Silver class action lawsuit alleges that the Registration Statement and defendants throughout the Class Period made materially false and/or misleading statements, as well as failed to disclose material adverse facts about Gatos Silver's business, operations, and prospects. Specifically, defendants failed to disclose to investors that: (i) the technical report for Gatos Silver's primary mine, the Cerro Los Gatos deposit, contained certain errors; (ii) among other things, the mineral reserves had been overestimated by as much as 50%; and (iii) as a result, defendants' positive statements about Gatos Silver's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On January 25, 2022, Gatos Silver revealed that "there were errors in the technical report entitled 'Los Gatos Project, Chihuahua, Mexico' with an effective date of July 1, 2020 . . . , as well as indications that there is an overestimation in the existing resource model." On a preliminary basis, Gatos Silver estimates a potential reduction of the metal content of the mineral reserve ranging from 30% to 50% of the metal content remaining after depletion. On this news, Gatos Silver's stock price fell by approximately 69%, damaging investors.
By the commencement of the Gatos Silver class action lawsuit, Gatos Silver shares were trading as low as $3.20 per share, a nearly 54% decline from the $7.00 per share IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Gatos Silver common stock pursuant and/or traceable to the Registration Statement issued in connection with the IPO and/or securities during the Class Period to seek appointment as lead plaintiff in the Gatos Silver class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor's ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs' firm. Please visit http://www.rgrdlaw.com for more information.
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Contact:
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
[email protected]
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SOURCE Robbins Geller Rudman & Dowd LLP
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