MILWAUKEE, June 20, 2005 (PRIMEZONE) -- Ademi & O'Reilly, LLP (http://www.ademilaw.com/cases/DRD.php) announced that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of DRDGOLD Limited ("DRDGOLD") (Nasdaq:DROOY), formerly known as Durban Roodepoort Deep, Limited, securities during the period between October 23, 2003 and February 24, 2005 (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Guri Ademi at 866-264-3995 or via e-mail at gademi@ademilaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.ademilaw.com/cases/DRD.pdf. If you wish to serve as lead plaintiff, you must move the Court by August 12, 2005. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The complaint charges DRDGOLD and certain of its officers and directors with violations of the Securities Exchange Act of 1934. DRDGOLD is a gold exploration and mining company. The Company operates gold mines through its South African and Australasian operations.
The complaint alleges that, throughout the Class Period, defendants made numerous statements regarding: (i) the successful restructuring of the Company's North West Operations in South America; (ii) the Company's ability to reduce the negative impact of the increasing value of the South African Rand versus the U.S. dollar; and (iii) the increasing strength of the Company's balance sheet. In truth and in fact, the Company's problems with its North West Operations were never fully resolved and resulted in the Company being forced to record an impairment charge for the full value of its mining assets there. Moreover, despite representations to the contrary, the Company continued to be negatively impacted by the increasing value of the South African Rand. As detailed in the complaint, these problems resulted in the Company being forced to announce that it might not be able to operate as a going concern. When this information was belatedly disclosed to the public, shares of DRDGOLD fell more than 25%, on extraordinarily heavy volume.
Plaintiff seeks to recover damages on behalf of all purchasers of DRDGOLD securities during the Class Period (the "Class"). The plaintiff is represented by Ademi & O'Reilly, LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.