HOUSTON, June 20, 2003 (PRIMEZONE) -- Emerson Poynter LLP, a securities class action trial law firm, announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of purchasers of Barick Gold Corp. ("Barick Gold" or the "Company") (NYSE:ABX) publicly traded securities during the period between February 14, 2002 and September 26, 2002, inclusive (the "Class Period"). A copy of the complaint can be obtained from the Court or by making a toll-free call to the Firm.
The complaint charges that defendants Barrick, 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. For example, throughout the Class Period, Barrick 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 taking into account the phasing out of several mines and decreasing ore quality (which increases costs) in several of its mines. These representations were materially false and misleading, according to the complaint, 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'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 Company announced that it expects 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). In reaction to the announcement, which came only days after the Company reiterated its positive expectations, Barrick's stock fell by 10.5% in one day, from $17.77 on September 25, 2002 to $15.90 on September 26, on extremely heavy trading volume.
If you purchased Barick Gold securities between February 14, 2002 and September 26, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court through Emerson Poynter or other counsel of your choice, not later than August 11, 2003. If you are a member of this class, you can join this class action by contacting Emerson Poynter via e-mail or calling toll-free.
Emerson Poynter has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call toll free or e-mail the firm. John G. Emerson, 830 Apollo Lane, Houston, TX 77058. Phone (281) 488-8854.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.