NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Gatos Silver, Inc. (NYSE: GATO) on behalf of long-term stockholders following a class action complaint that was filed against Gatos Silver on February 23, 2022 with a Class Period from October 28, 2020 and January 25, 2022, both dates inclusive (the “Class Period”); and/or pursuant or traceable to the October 28, 2020 IPO. Our investigation concerns whether the board of directors of Gatos Silver have breached their fiduciary duties to the company.
The litigation focuses on Gatos’ statements concerning its Cerro Los Gatos (“CLG”) mine located in Chihuahua, Mexico, including the Company’s estimates in its July 1, 2020 Technical Report (“2020 Technical Report”) that the CLG deposit “contains approximately 9.6 million diluted tonnes of proven and probable mineral reserves.”
According to the complaint, defendants made materially false and misleading statements and failed to disclose material adverse facts, including: (1) that the 2020 Technical Report contained errors; and (2) that, among other things, the GLG mineral reserves had been overestimated by as much as 50%.
The truth came to light on Jan. 25, 2022, when Gatos disclosed that during a resource and reserve update process, which included a detailed reconciliation of recent production performance, the Company concluded that there were errors in the 2020 Technical Report, as well as indications that there is an overestimation in the existing resource model. As a result, the Company estimated a potential reduction of the metal content of CLG mineral reserve ranging from 30% to 50% of the metal content and warned that the mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon.
This revelation drove the price of Gatos shares as much as 70% lower on January 26, 2022.
If you are a long-term stockholder of Gatos Silver, have information, 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 Brandon Walker or Marion Passmore by email at email@example.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.