NEW YORK, July 17, 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 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 the federal securities laws.
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%.
If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than August 28, 2020. Any member of the proposed Class may move to serve as the Lead Plaintiff through counsel of their choice.
If you have suffered a net loss from investment in Kirkland’s common stock from January 8, 2019 to November 25, 2019, you may obtain additional information about this lawsuit and your ability to become a Lead Plaintiff, by contacting 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. The class action is titled Brahms v. Kirkland Lake Gold Ltd., No. 1:20-cv-4953 (S.D.N.Y.).