BALA CYNWYD, Pa., June 16, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Barrick Gold Corp. ("Barrick Gold" or the "Company) (NYSE:ABX) from February 14, 2002 through September 26, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges that defendants Barrick Gold, Randall Oliphant (CEO and President until February 12, 2003), John K. Carrington (COO and Vice Chairman) and Jamie C. Sokalsky (CFO) violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 14, 2002 and September 26, 2002. Throughout the Class Period, Barrick Gold assured the markets that it was improving its operations by keeping its production costs in check and that the Company expected to earn $0.42-$0.47 per share in 2002, even after taking into account the phasing out of several mines and decreasing ore quality (which increases costs) in several of its mines. As alleged in the complaint, these representations were materially false and misleading because they failed to disclose that the Company's expected costs for the year would be well above the figures highlighted to the public, that Barrick Gold's costs per ounce had increased dramatically in 2002 and would continue to increase throughout the year, and that the Company's repeated assurances that production and costs would continue to improve in 2002 were lacking in any reasonable basis and were contradicted by facts known to defendants, or, at the very least, recklessly disregarded by them.
On September 26, 2002, the truth emerged when the Company announced that it expected to earn materially less in 2002 than previously announced, due to increased costs stemming from production issues at several mines (which, the Company misleadingly represented during the Class Period, would be resolved in the second half of 2002). Market reaction to the news was swift. On September 26, 2002, just days after the Company reiterated its positive expectations, Barrick Gold's stock fell by 10.5%, from $17.77 per share on September 25, 2002 to $15.90 per share, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/currentcases.cfm.
If you are a member of the class described above, you may, not later than August 11, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca