Gibbs Law Group investigates potential violations of securities law
OAKLAND, Calif.–(BUSINESS WIRE)–$GATO #GATO– Shares of Gatos Silver, Inc. fell 70% following the company’s disclosure that it had identified errors in a technical report and that its existing resource model included overestimates. The company said it now expects a potential reduction in the metal content of its mineral reserve and that its 2020 technical report “cannot be relied upon”. Gibbs Law Group is investigating a potential class action lawsuit against Gatos Silver on behalf of investors who lost money in Gatos Silver, Inc. (NYSE: GATO).
To speak to a lawyer regarding this class action investigation, click here or call (888) 410-2925.
On Tuesday, January 25, 2022, silver mining company Gatos Silver disclosed that it had identified errors in a previously released technical report titled “Los Gatos Project, Chihuahua, Mexico”, and found “indications that ‘there is an overestimate of the existing resource model. The company said it “now estimates a potential reduction in the metal grade of the CLG Mineral Reserve ranging from 30% to 50% of the metal grade metal remaining after depletion”. Gatos Silver also cautioned that “the mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon”.
Gatos Silver’s press release says the company is now working with independent engineering consultants to “better understand the extent of the overstatement, including performing a detailed reconciliation of production to previous models and calculation estimates of reserves”, but anticipates that this reconciliation work will not be completed until the second half of 2022.
Following news of the error-ridden technical report, Gatos Silver stock plunged as much as 70% on Wednesday, January 26, 2022, causing significant damage to investors.
What must What do Gatos Silver investors do?
If you have invested in Gatos Silver, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you might recoup your losses. Our investigation focuses on whether Gatos Silver, Inc. violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors nationwide in securities litigation to redress abusive corporate governance practices, breaches of fiduciary duty and breaches of powers of attorney. The firm has recovered over $1 billion for its clients against some of the largest corporations in the world, and our attorneys have received numerous accolades for their work, including “Best Lawyers in America”, “Best Plaintiffs Lawyers in California “, “California Lawyer Attorney of the Year”, “Best Class Action Lawyers Under 40”, “Consumer Protection MVP” and “Best Cybersecurity/Privacy Lawyers Under 40”.
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