NEW YORK--(BUSINESS WIRE)--Pomerantz LLP announces that a class action lawsuit has been filed against Katanga Mining Limited (“Katanga” or the “Company”) (OTCMKT: KATFF) and certain of its officers. The class action, filed in United States District Court, for the District of New Jersey, is on behalf of a class consisting of investors who purchased or otherwise acquired Katanga’s securities between February 11, 2016 and November 19, 2017, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Katanga’s securities between February 11, 2016 and November 19, 2017, both dates inclusive, you have until January 29, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and quantity of shares purchased.
Katanga through its subsidiary, Kamoto Copper Company SA, engages in the copper and cobalt mining and related activities in the Democratic Republic of Congo.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company engaged in improper accounting practices; (2) there were material weaknesses in the Company’s internal control over financial reporting; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On November 20, 2017, Katanga announced the resignation of three executives of Glencore plc, Katanga’s parent company, from Katanga’s board of directors after an internal review found “material weaknesses” in the Company’s financial reporting controls. Katanga stated that questions about the “appropriateness” of certain of Katanga’s accounting practices arose during the course of an investigation by the Ontario Securities Commission (the “OSC”). The Company restated certain historical financial statements for the years 2015 and 2016, as well as the first quarter of 2017, and advised investors that “the Company’s previously filed consolidated financial statements for the years ended December 31, 2016, 2015 and 2014 and related MD&A [management’s discussion and analysis] and all interim consolidated financial statements and interim MD&A since December 31, 2014 should not be relied upon.” In addition, Katanga advised investors that “OSC enforcement staff is also investigating the adequacy of Katanga’s corporate governance practices and compliance with those practices and the related conduct of certain directors and officers of Katanga” and “Katanga’s risk disclosure in connection with applicable requirements under certain international bribery, government payment and anti-corruption laws.”
On this news, shares of the Company fell $0.23 per share or over 23% over three trading days to close at $0.75 per share on November 22, 2017, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com