NEW YORK, Aug. 27, 2020 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Kirkland Lake Gold Ltd. ("Kirkland" or the "Company") (NYSE: KL) and certain of its officers. The class action, filed in United States District Court for the Southern District of New York, and indexed under 20-cv-05505, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Kirkland securities between January 8, 2018, and November 25, 2019, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violation of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Kirkland securities during the class period, you have until August 20, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Kirkland is a Canadian limited liability company headquartered in Toronto, Ontario. Kirkland owns and operates gold mines in Canada and Australia. Over the years, Kirkland has established itself as the top leader among gold producers, mainly based on its ultra-low all-in sustaining costs as well as its focus on high-quality underground mines. Kirkland's regulatory filings and other public representations particularly highlight Kirkland's all-in sustaining costs, which averaged about $564 per ounce, representing half of the global average for other gold miners. Additionally, Kirkland frequently touted the high quality of its underground mines, reporting average reserve grade of 18.5 g/t as compared to other gold mines with an average grade of approximately 1 g/t. These and other metrics are important performance indicators that investors rely on in making their investment decisions.
Upon information and belief, leading up to November 25, 2018, Kirkland was considering acquiring Detour Gold Corporation ("Detour"), a Canadian exploration and mining company. Kirkland's acquisition efforts and Detour's identity were undisclosed to Kirkland's investors. Detour was an underperforming gold miner, one-third of the size of Kirkland who consistently recorded significantly worse performance metrics, including high all-in sustaining costs and a low average reserve grade. Detour's costs were more than double of Kirkland's, and well above the average for other gold miners. Additionally, Detour's reserve grade was nearly twenty-fold below Kirkland's.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company's business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and failed to disclose to investors that: (i) Kirkland lacked adequate internal controls over financial reporting, especially as it related to its projections of risks, reserve grade, and all-in sustaining costs; (ii) as a result of the known, but undisclosed, impending acquisition of Detour, the Company's projections relating to its risks, reserve grade, and all-in sustaining costs were false and misleading; (iii) the Company's financial statements and projections were not fairly presented in conformity with International Financial Reporting Standards ("IFRS"); and (iv) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company's business, operations, and prospects and/or lacked a reasonable basis and omitted material facts.
On November 25, 2019, after months of active negotiations between Kirkland and Detour, the Company announced the acquisition of Detour in all stock deal valued at $3.68 billion. Via this news, investors first learned that over the course of several months, Kirkland was trading at artificially inflated levels. Investors have realized that the real value of Kirkland is one that reflected Kirkland's transformation from an ultra-low-cost, high-grade producer to a larger producer with higher costs and lower grades. Investors thus learned that Kirkland's rosy projections, guidance, and plans, promising to deliver low-cost, high-grade mining were false and unsustainable in the light of the impending acquisition of Detour, which only the Company executives knew of.
The Company's surprise transition caused a precipitous decline in the price of Kirkland's shares, which fell 17%, to close at $39.44 per share on November 25, 2019, on unusually high trading volume. Several securities analysts downgraded Kirkland's rating and significantly lowered the Company's price target.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
View original content:http://www.prnewswire.com/news-releases/shareholder-alert--pomerantz-law-firm-reminds-shareholders-with-losses-on-their-investment-in-kirkland-lake-gold-ltd-of-class-action-lawsuit-and-upcoming-deadline--kl-301120152.html
SOURCE Pomerantz LLP