Cincinnati, OH (PRWEB) April 15, 2012
The law firm of Statman, Harris & Eyrich, LLC announces that a securities class action lawsuit has been filed against Nevsun Resources Ltd. (“Nevsun” or the “Company”). The complaint, filed by another firm and pending in the United States District Court for the Southern District of New York (Case No. 12-cv-1845), alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The action, filed on behalf of shareholders of common shares of the Company during the period March 31, 2011 through February 6, 2012 (the “Class Period”), alleges defendants made false and misleading statements or failed to disclose that: (i) Nevsun’s mining at the Bisha Mine resulted in a material amount of waste rock rather than gold ore; (ii) gold ore and gold from the Bisha Mine was materially less than the amount estimated by Nevsun’s model, and defendants knew or had reason to know this based on data routinely collected from the Bisha Mine throughout the Class Period; (iii) Nevsun was progressing through the ore body much more quickly than planned in order to maintain gold production at a rate that would not reveal to investors that the amount of gold at the Bisha Mine was materially less than the Company’s model; (iv) the Company was aware that its model was materially defective because the actual amounts of gold mines at Bisha did not reconcile with the Company’s model previously disseminated to the investing public; and (v) Nevsun materially overstated its gold reserves at the Bisha Mine.
On February 7, 2012, Nevsun issued a press release disclosing: (i) that it had materially overstated gold reserves at the Bisha Mine by 30-35%; (ii) that the amount of gold to be produced in 2012 would be about half of what Nevsun previously represented to investors; and (iii) that it would restate its proven reserves. Following this news, Nevsun’s common shares fell from a closing price of $6.34 per share on February 6, 2012 to close at $4.40 per share on February 7, 20.12.
Investors who held shares of Nevsun Resources Ltd. common stock during the Class Period who wish to discuss this action are encouraged to contact attorney Brian Giles at (513) 345-8181 or by e-mail to classaction(at)statmanharris(dot)com for further information about this matter without any obligation or cost to you. If you wish to serve as lead plaintiff, you must move the Court no later than May 14, 2012 to request that the Court appoint you as lead plaintiff. You do not need to take any action at this time to be a class member, and you may retain counsel of your choice.
Statman, Harris & Eyrich, LLC, which has significant experience in consumer and securities fraud class actions and derivative litigation, has offices in Chicago, Illinois; Cincinnati, Ohio; Dayton, Ohio; and Sarasota, Florida. http://www.statmanharris.com Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT: Statman, Harris & Eyrich, LLC
Brian Giles, Esq.
441 Vine Street, Suite 3700
Cincinnati, Ohio 45202
Phone: (513) 345-8181