If you think that your company’s stock prices were mismanaged, it may be time to file a Gold Resource lawsuit. You may have lost money on the investment due to mismanagement, a breach of fiduciary duty, and misuse of control. To file a lawsuit, you must be a lead plaintiff. Learn more about your rights in this article. This article also outlines the common claims for a Gold Resource lawsuit.
A Seattle-based law firm has filed a class action securities lawsuit against Gold Resource Corporation (NASDAQ: GORO) on behalf of purchasers of its common stock. The suit alleges that the company failed to follow accounting standards, overstated its financial condition, and misrepresented its revenue and production statistics, including estimating sales and revenue from products that were not yet delivered to buyers. If this lawsuit is successful, it will represent a major setback for Gold Resource.
Despite the massive damage caused to the region, the claim is not just about money. The company is also facing allegations of gang-raping 19 women and not paying occupancy fees to local villagers. If the lawsuit is successful, the combined claims could be worth more than US$13 billion. However, the case isn’t over yet. The investigation is ongoing, and the government is requesting more information to assess the merits of the claims.
Breach of fiduciary duty
The plaintiff’s attorney in the Gold Resource lawsuit spoke of “breach of fiduciary duty” and “negligence” in the case. In other words, the defendant failed to fulfill his fiduciary duty when he settled the claim. The word “fiduciary” is derived from the Latin word Fiducia, which means “trust.” The adjective “fiduciary” means “belonging to a trustee.”
Corona was not in a weak position because the parties had a contractual relationship. However, when Lac was privy to confidential information about Williams’s property, the acquisition may have constituted a breach of confidence under common law. In any event, the court did not find that Lac was guilty of a breach of fiduciary duty. In light of these findings, the Court affirmed the trial judge’s ruling that Lac had acted negligently in disclosing the confidential information to the Williams family.
Abuse of control
A recent lawsuit has found Gold Resource Corporation guilty of abuse of control and misrepresentation. The plaintiffs are Nitesh Banker, Scott Cantor, and Robert D. Rhodes, three former employees of the mine. The plaintiffs’ claim stems from the Company’s alleged failure to implement adequate financial controls and to act with due diligence. This lawsuit has prompted the government to impose new regulations for mining companies to protect workers.
The plaintiffs’ complaint details the cruel treatment suffered by a group of Eritrean miners during forced labor. These employees endured harsh working conditions, long hours, and malnutrition for little pay. Nevsun must have been aware of credible reports of abuse when construction of the Bisha mine began in 2008. The company was complicit in the abuses. In 2010, the company joined the Voluntary Principles on Security and Human Rights, but it did not prevent the abuses.
Misrepresentation of financial condition
A suit filed against Gold Resources Corp. by shareholders has centered on the company’s alleged misrepresentation of its financial condition. The suit alleges that the company’s financial reports omitted material information that should have been disclosed to investors. The company’s statements contained some materially misleading information. In this context, it is important to note that the lawsuit’s results are far from conclusive. A summary of the lawsuit’s outcomes and the decision is below.
Violation of Clean Water Act
Attorney General Bob Ferguson has filed a lawsuit against two gold mining companies over alleged violations of the Clean Water Act. The lawsuit claims the companies violated the act by discharging illegal levels of pollutants into watersheds near the Buckhorn Mountain gold mine. The fines, which could total millions of dollars, could be imposed on the companies. The court dismissed the defenses of the Mining Companies based on past violations.
Specifically, the plaintiffs have asked the court to order the Crown to comply with the permit terms, award attorney’s fees, and order monetary penalties for violations. In a nutshell, the lawsuit seeks to force the company to pay at least $54,800 per violation per day for five years. This is a significant fine compared to the $1 million that would be awarded for similar violations of the Clean Water Act in other areas of the United States.