From the Wires
Faruqi & Faruqi, LLP Encourages Investors Who Suffered Substantial Losses Investing In Gold Resource Corporation To Contact the Firm
By: PR Newswire
Nov. 9, 2012 10:08 PM
NEW YORK, Nov. 9, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Gold Resource Corporation ("Gold Resource" or the "Company") (NYSE AMEX: GORO).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) aggressive expansion of Gold Resource's underground mining operations during the first quarter of 2012 had created operational difficulties in the mine, which were lowering mine production; (2) Gold Resource was mining in lower grade zones of the deposit; (3) significant operational efficiency improvements would be needed before the Company could mine from higher grade stopes; (4) 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; and (5) 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 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 that 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 from its July 19, 2012 closing price of $24.99 per share to $17.34 per share.
Then, on October 17, 2012, Gold Resource again surprised the market when it announced disappointing production results for the third quarter ended September 30, 2012.
Request more information now by clicking here: www.faruqilaw.com/GORO. There is no cost or obligation to you.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
SOURCE Faruqi & Faruqi, LLP
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