NEW YORK, July 31, 2020 (GLOBE NEWSWIRE) – Pomerantz LLP announces a class action lawsuit against Kirkland Lake Gold Ltd. ("Kirkland" or the "Company") (NYSE: KL) and some of its officers. The class action lawsuit, which was filed with the U.S. District Court for the Southern District of New York and indexed at 20-cv-05505, is directed to a class consisting of all individuals and organizations except defendants who bought or bought Kirkland securities between them otherwise acquired January 8, 2018 and November 25, 2019, both dates including (the "class period"), to seek compensation for damage caused by the defendant's breach of federal securities laws and to take remedial action pursuant to Sections 10 (b) and 20 (a) to be adopted) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated therein against the Company and some of its officers.
If you are a shareholder who bought Kirkland securities during the class, you have until August 20, 2020 to request the court to appoint you as the primary plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this promotion, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 7980. Those who inquired via email are asked to contact them Specify postal address, telephone number and the number of shares purchased.
(Click here for information on participating in the class action lawsuit.)
Kirkland is a Canadian limited liability company headquartered in Toronto, Ontario. Kirkland owns and operates gold mines in Canada and Australia. Over the years, Kirkland has established itself as a leading gold producer, primarily due to its extremely low total cost and focus on high quality underground mines. Kirkland's regulatory filings and other public representations particularly highlight Kirkland's total cost, which averaged $ 564 an ounce and is half the global average for other gold mining companies. In addition, Kirkland frequently referred to the high quality of its underground mines and reported an average reserve grade of 18.5 g / t compared to other gold mines with an average grade of around 1 g / t. These and other key figures are important performance indicators that investors rely on when making investment decisions.
According to information and beliefs, Kirkland considered acquiring Detour Gold Corporation ("Detour"), a Canadian exploration and mining company, until November 25, 2018. Kirkland's acquisition efforts and Detour's identity were unknown to Kirkland investors. Detour was a poorly performing gold mine, one third the size of Kirkland, which consistently had significantly poorer metrics, including high total costs and a low average reserve ratio. Detour's cost was more than twice that of Kirkland's and was well above the average for other gold mining companies. In addition, Detour's reserve level was nearly twenty times that of Kirkland.
The complaint alleges that the defendants have made materially incorrect and misleading statements throughout the teaching period and have not disclosed any material adverse facts about the company's business, operating, and compliance policies. In particular, the defendants provided false and / or misleading information and did not disclose to investors that: (i) Kirkland did not have adequate internal control over financial reporting, particularly in connection with their forecasts of risk, reserve requirements and total costs; (ii) Due to the known but unannounced upcoming acquisition of Detour, the company's forecasts regarding its risks, reserve quality and total maintenance costs were incorrect and misleading. (iii) the Company's financial statements and forecasts have not been adequately presented in accordance with the International Financial Reporting Standards ("IFRS"); and (iv) on the basis of the foregoing, the defendants lacked an adequate basis for their positive statements about the business, the business and prospects of the company and / or lacked an adequate basis and omitted material facts.
On November 25, 2019, after months of active negotiations between Kirkland and Detour, the company announced the acquisition of Detour worth $ 3.68 billion. This news initially informed investors that Kirkland was trading at an artificially inflated level over the course of several months. Investors have realized that the real value of Kirkland reflects Kirkland's transformation from an extremely inexpensive, high quality manufacturer to a larger manufacturer with higher costs and lower quality. Investors learned that Kirkland's rosy forecasts, guidelines, and plans that promise to deliver low-cost, high-quality mining were wrong and unsustainable given the upcoming Detour acquisition, which only company executives knew about.
The company's surprising transition led to a steep decline in Kirkland's share price, which fell 17% and closed on November 25, 2019 at an unusually high trading volume at $ 39.44 per share. Several securities analysts downgraded Kirkland's rating and significantly lowered the company's price target.
The Pomerantz law firm, with offices in New York, Chicago, Los Angeles and Paris, is considered one of the leading firms in corporate, securities and antitrust litigation. The Pomerantz company was founded by the late Abraham L. Pomerantz, the dean of the class action lawsuit, and was a pioneer in the field of class action lawsuits for securities. Today, more than 80 years later, the Pomerantz company continues its tradition and fights for the rights of victims of securities fraud, breaches of trust and misconduct by companies. The company has claimed back several million dollars in damages on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby