NEW YORK, July 29, 2020 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, has filed a federal securities class action in the United States District Court for the Southern District of New York on behalf of its client and all similarly situated investors who purchased or otherwise acquired common stock of Kirkland Lake Gold Ltd. ("Kirkland" or the Company") (NYSE: KL) from January 8, 2019 to November 25, 2019, inclusive (the "Class Period"). The class action alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§ 78j(b) and 78t(a) and Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. § 240.10b-5. The class action is titled Brahms v. Kirkland Lake Gold Ltd., No. 1:20-cv-4953 (S.D.N.Y.).
If you are a shareholder who purchased Kirkland securities during the Class Period, you have until August 28, 2020 to ask the Court to appoint you as the Lead Plaintiff for the Class. Any member of the proposed Class may move to serve as the Lead Plaintiff through counsel of their choice. To obtain a copy of the complaint or to discuss this lawsuit, contact Christian Levis at clevis@lowey.com or by calling 914-733-7220 or Andrea Farah at afarah@lowey.com or by calling 914-733-7256.
Headquartered in Toronto, Ontario, Kirkland is a gold mining and exploration company with operations in Canada and Australia. Historically, Kirkland pursued a strategy based on high-grade underground mining with low all-in sustaining costs. During the months leading up to November 25, 2019, Kirkland negotiated the acquisition of Detour Gold Corporation (“Detour”). The acquisition was dilutive of Kirkland’s reserve grade and increased its all-in sustaining costs.
The Complaint alleges that Kirkland made false and misleading statements to the public throughout the Class Period and failed to disclose that: (i) Kirkland lacked adequate internal controls over financial reporting, especially as it relates to its projections of risks, reserve grade, and all-in sustaining costs; (ii) the Company’s projections relating to its risks, reserve grade, and all-in sustaining costs were false and misleading in light of the impending acquisition of Detour; (iii) the Company’s financial statements and projections were not fairly presented in conformity with International Financial Reporting Standards; 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, the company announced that it had agreed to acquire Detour. On news of this acquisition, Kirkland’s shares fell from $47.62 per share to $39.44, a decline of $8.18, more than 17%.
About Lowey Dannenberg
Since its inception in 1967, Lowey has specialized in the prosecution of complex civil class action lawsuits and has grown into one of the most successful shareholder litigation firms in the field. Its investor litigation group has recovered billions of dollars in the aggregate and has achieved landmark, long-term corporate governance changes at public companies. Over decades of zealous advocacy, Lowey has developed a profound knowledge of securities and antitrust class action litigation.
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