The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against Gatos Silver, Inc. ("Gatos") (NYSE: GATO). The action charges Gatos with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of Gatos' materially misleading statements to the public, Gatos' investors have suffered significant losses.
Kessler Topaz is one of the world's foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
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LEAD PLAINTIFF DEADLINE: APRIL 25, 2022
CLASS PERIOD: OCTOBER 28, 2020 THROUGH JANUARY 25, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. at (484) 270-1453 or via email at [email protected]
GATOS' ALLEGED MISCONDUCT
Gatos focuses on the production, development and exploration of silver and zincrich mineral deposits. On October 29, 2020, Gatos conducted its initial public offering ("IPO"), selling approximately 24,644,500 shares of common stock at a price of $7.00 per share, and received net proceeds of approximately $156.1 million from the offering.
On January 25, 2022, after the market closed, Gatos revealed in a press release that "there were errors in the technical report entitled 'Los Gatos Project, Chihuahua, Mexico' with an effective date of July 1, 2020 . . . , as well as indications that there is an overestimation in the existing resource model." On a preliminary basis, Gatos estimated a potential reduction of the metal content of the mineral reserve ranging from 30% to 50% of the metal content remaining after depletion.
Following this news, Gatos' stock price fell $7.02, or 69%, to close at $3.17 per share on January 26, 2022. As of the date the initial complaint was filed, Gatos shares were trading as low as $3.20 per share, a nearly 54% decline from the $7.00 per share IPO price.
WHAT CAN I DO?
Gatos investors may, no later than April 25, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Gatos investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
[email protected]
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