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GATO.US
id: 898

Gatos Silver (GATO) Report Errors Case $21M Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
D. Colorado
Court
1:22-cv-00453
Case number
28 Oct 2020
Class period Start
25 Jan 2022
Class period End
19 Jun 2024
Claim deadline
Gatos agreed to pay $21M to investors to resolve the claims over errors in a technical report.

Case Details:

On January 25, 2022, Gatos Silver disclosed errors in a technical report, suggesting a potential 30-50% reduction in mineral reserve metal content.

This news led to a 69% $GATO drop on January 26, 2022, and $GATO traded nearly 54% below the IPO price.

Gatos was accused of not disclosing errors in the technical report and the overestimation of mineral reserves.

Gatos has now decided to end these allegations and pay a $21M settlement.


Case Status
Accepting Late Claims
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
22 February 2022
Plaintiffs
Michael Bilinsky
Attorneys
Bleichmar Fonti & Auld LLP
Defendants
Stephen Orr, Roger Johnson, Philip Pyle, Janice Stairs, Ali Erfan, Igor Gonzales, Karl Hanneman, David Peat, Charles Hansard, Daniel Muñiz Quintanilla
Judge
Lewis T. Babcock
Administrator
EPIQ
Settlement agreement date
2023-06-20
Court hearing date
31 May 2024
Exclusion deadline
05 May 2024
Objection deadline
10 May 2024
Class wide damages
$472,962,600
Trades matching type
FIFO
+$21,000,000
Cash Settlement Amount

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