NEW YORK, Nov. 13, 2012 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action has been filed in the United States District Court for the District of Colorado on behalf of purchasers of Gold Resource Corporation ("Gold Resource" or the "Company") (NYSE:GORO) common stock during the period between January 30, 2012 and October 17, 2012 (the "Class Period").
If you purchased Gold Resource Corporation, Inc. between January 30, 2012 and October 17, 2012, you may, no later than December 24, 2012, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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.
For more information please contact either Peter Safirstein or Sheila Feerick at Morgan & Morgan, Five Penn Plaza, 23rd floor, New York, New York 10001 or by telephone at (800) 732-5200, or by email to GoldResourceCase@morgansecuritieslaw.com, or visit our website at www.morgansecuritieslaw.com.
The complaint charges Gold Resource and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Gold Resource, based in Colorado Springs, Colorado, mines, mills and produces metal concentrates that contain gold, silver, copper, lead and zinc in Mexico. Morgan & Morgan has not filed a complaint in this matter.
The complaint alleges that defendants issued materially false and misleading statements regarding the Company's operational status and financial projections. Specifically, it is alleged that defendants misrepresented or failed to disclose the following: (1) that overly aggressive expansion of Gold Resource's underground mining operations in the first quarter of 2012 had created operational difficulties and lower mine production; (2) that Gold Resource was mining in lower grade zones of the deposit; (3) that the mine required significant operational efficiency improvements, including electric power upgrades, expanded ventilation and the ability to handle increased ground water at deeper levels, which limited the Company's ability to mine higher grade stopes; (4) that decreases in long-hole stoping were forcing the Company to process more diluted development ore and mine from areas of the deposit with lower metal grades; (5) that as a result of the foregoing, tonnes from stoping, as a percentage of milled ore, had decreased from an estimated year-to-date high of 55% during the first quarter of 2012 to an estimated year-to-date low of 15% during the second quarter of 2012; and (6) that during the third quarter of 2012, a dispute had arisen between the Company and the buyer of its metal concentrates, with the buyer claiming net adjustments (reductions) to the Company's provisional third quarter 2012 invoices.
On July 19, 2012, Gold Resource announced preliminary production results for the second quarter ended June 30, 2012, stating that the Company's second quarter production was lower than expected and the Company was dramatically reducing guidance for fiscal years 2012 and 2013. In response to these revelations, shares of the Company's common stock fell more than 30%. Then, on October 17, 2012, Gold Resource announced preliminary production results for the third quarter ended September 30, 2012, reporting additional reasons for the Company's now lower than expected third quarter 2012 results, including, but not limited to, a dispute with the buyer of the Company's metal concentrates resulting in the buyer claiming net adjustments (reductions) to Gold Resources' invoices. Following this news, the Company's common stock fell from its October 17, 2012 closing price of $20.15 per share to $18.01 per share on October 18, 2012, on high trading volume.
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