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GATO.US

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

D. Colorado
Court
1:22-cv-00453
Case number
28 Oct 2020
Class period Start
25 Jan 2022
Class period End
  • On January 25, 2022, Gatos Silver revealed errors in a technical report.
  • This disclosure caused a 69% $GATO drop and shares were trading nearly 54% below the IPO price.
  • Gatos agreed to pay $21M to investors to resolve the claims due to this case.
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.
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
Class wide damages
$472,962,600
Trades matching type
FIFO
+$21,000,000
Total Settlement Amount
Created by Polina Foster, Scout

Gatos Silver Inc

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It explores for silver deposits. The company explores for zinc, lead, copper, and gold ores. Its flags...

    Ticker
    GATO.US
    ISIN
    US3680361090
    CIK
    1517006
    Sector
    Basic Materials
    Industry
    Other Precious Metals & Mining
    Country
    USA
    Address
    925 West Georgia Street, Vancouver, BC, Canada, V6C 3L2