BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of NovaGold Resources Inc. ("NovaGold" or the "Company") (NYSE: NG) investors concerning the Company and its officers’ possible violations of federal securities laws.
On May 28, 2020, J. Capital Research or ("J. Capital") published a report claiming that "NovaGold's management team has systematically misled investors" about the Company's Donlin gold-mining project, "a deposit so remote and technologically challenging that the mine will never be built." J. Capital criticized NovaGold for using "custom metrics designed to deceive," which included, among other representations, that "the deposit will require $6.7 bln in capital, [when] the feasibility study clearly shows this number is $8 bln." J. Capital also contended that "[t]he proposed natural gas pipeline central to powering the project is dead on arrival," quoting an engineer who worked on costing the pipeline as stating that he "doesn't know of any engineering company that has the experience to build such a complex pipeline."
On this news, the Company’s share price fell $0.94 per share, or over 8%, to close at $9.71 per share on May 28, 2020, thereby injuring investors.
If you purchased NovaGold securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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