Asanko Gold Lawsuit Filed After Stock Plunge
WASHINGTON, DC (June 1, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Asanko Gold Inc. (“Asanko” or the “Company”) (NYSE:AKG) and certain of its senior executives. The class action is on behalf of investors who purchased or otherwise acquired Asanko, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934. The case has been filed in United States District Court for the Eastern District of New Yorkand docketed under 17-cv-03280.
If you are a shareholder who purchased Asanko securities between October 24, 2014 – May 31, 2017 (“Class Period”), you have until July 31, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class. Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA to discuss this action.
Allegations Against Asanko
Asanko engages in the exploration, development, and production of gold properties. Its principal project is the Asanko Gold Mine located in the Amansie West District of the Republic of Ghana, West Africa. The Asanko Gold Mine comprises two deposits, Nkran (currently in production) and Esaase, a number of satellite deposits (Abore, Asuadai, Akwasiso, Dynamite Hill, Nkran Extension, Adubiaso and Adubiaso Extension) and a 3Mtpa carbon-in-leach processing plant facility.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s Mineral Resource Estimates are flawed; (2) some of the Company’s resources models exhibit signs that they have been “smeared,” which would cause estimates of their ore contents to be inflated; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On June 30, 2016, hedge fund K2 & Associates Investment Management Inc. published a report on the Company asserting, among other things that the Company’s gold resources “don’t add up” and appear to be over-inflated by a factor of two.
On this news, shares of the Company fell $0.15 per share or over 3% from its previous closing price to close at $3.81 per share on June 30, 2016, damaging investors.
On May 31, 2017, research firm Muddy Waters published a report on Asanko Gold asserting, among other things, that: (1) Asanko Gold made investments based on flawed geology in Nkran, its satellite pits and Esaase that Muddy Waters believes “will never be recovered”; and (2) there are indicia that some of Asanko Gold’s resources models have been “smeared”, which would cause estimates of their ore contents to be inflated.
On this news, shares of the Company fell $0.58 per share or over 31% to $1.29 per share during intraday trading on May 31, 2017 and were halted, damaging investors.
About USMA
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
Contact
David P. Abel
(202) 274-0237
[email protected]