Class actionI received the following reply to an inquiry I made to all six of the 'Law Firms' (I use that term loosely) that have been posting here about starting a Class Action against Endeavour. I suggested that I would be interested in joining such action ( I emphatically am not) , in the hope they would take my query seriously and give an answer to one of my questions, which was: "What is the basis of your claim that Securities Violations have occured" . One firm did reply, and I show that response below. ( A couple other firms also replied but not seriously)
"Under provincial securities legislation, publicly traded companies, such as Endeavour, have ongoing disclosure obligations to investors. If those disclosures contain a misrepresentation, then investors can sue to recover losses suffered on the shares they acquired after the misrepresentation was made and before the misrepresentation is publicly corrected.
You’re right to point out that the evidence is still developing at this early stage. However, based on our investigation to date we believe there is a basis for investors to assert a misrepresentation claim. Endeavour’s announcement that Mr. De Montessus engaged in “serious misconduct” by issuing an irregular payment related to the disposal of an asset (we believe the Agbaou mine in early 2021) indicates, in our view, that Endeavour’s earlier disclosures were misleading. In particular, Endeavour’s disclosures to investors about (i) the sale of the Agbaou mine and its proceeds and (ii) the effectives of Endeavour’s internal controls, which should have stopped the irregular payment if they were operating effectively.
In terms of time frame, we believe the first actionable misrepresentation occurred at the time the sale of the Agbaou mine was announced (January 22, 2021). There is a 3-year limitation period on this type of misrepresentation claim, meaning that an action cannot be brought for misrepresentations that occurred more than 3 years ago. As such, it is important for investors to protect their rights to recover damages in disclosures in February and March 2021 by commencing an action in the near term.
Our contingency fee ranges from 25%-33%. That fee is subject to Court approval at the end of the litigation.
My colleague, Alex Dimson who is cc’d on this email, is currently working out of our Vancouver office. When you are back from out of country, he would be happy to meet with you in-person to discuss further, if that is something you would be open to.
Please let me know if you have any further questions.
Kind regards,
Zohra "
Hopefully I am not breaking some lawyer confidentially agreement here by posting this email!
Anyway make of it what you will. I am sure Endeavours lawyers are all over the allegations.