Shareholder Alert: Robbins LLP Announces Golden Star Resources Ltd. (GSS) Sued for Misleading Shareholders

SAN DIEGO & TORONTO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Golden Star Resources Ltd. (NYSE: GSS) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between February 20, 2019 and July 30, 2019. Golden Star is a mid-tier gold mining company with operating mines in Ghana. Golden Star's revenue is generated through its two underground mines called Wassa and Prestea.

If you suffered a loss as a result of Golden Star's misconduct, click here.

Golden Star Resources Ltd. (GSS) Accused of Misleading Shareholders

According to the complaint, in February 2019, Golden Star claimed it was seeing "tremendous improvement" in operational metrics and performance of the Prestea mine and that "blasting" issues had been rectified. Following these positive representations, Golden Star continuously provided optimistic guidance on the Company's production goals, the quality and grade of that production, as well as the cost per ounce of that production for both Prestea and Wassa throughout the relevant period. Contrary to Golden Star's representations, on July 31, 2019, Golden Star released disappointing second quarter financial results, disclosing a cut to the Company's production guidance and an increase in its cash operating cost estimates. Golden Star cited a laundry list of issues for its poor financial performance, including the use of insufficient geological and geotechnical data and poor drilling strategies and techniques. On this news, Golden Star's stock price fell 17% to close at $3.55.

Golden Star Resources Ltd. (GSS) Shareholders Have Legal Options

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Leo Kandinov
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Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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