There is a reason companies are required to disclose information about their enterprise when trading on the stock market. Accurate disclosure ensures all potential investors are as aware of any risks as possible. Failure to disclose or to wilfully misrepresent can be viewed at the very least as securities misconduct. Investors and shareholders have the right to receive regular updates about their investments that are truthful, accurate and not misleading.
Investing in securities does not come without a degree of risk. Citizens of Ontario and other Canadian provinces must decide if the risk is acceptable or not. However, it is impossible to make the right decision when the company in which a person wants to invest withholds relevant information. Barrick Gold Corporation’s South America-based Pascua-Lama mining development project is an excellent example. Between 2009 and 2012, Barrick Gold repeatedly issued misrepresentations about the project in its public disclosures.
Specifically, Barrick misrepresented shareholders regarding the mining project’s status, its estimated capital costs and its intended cash flow. Further, Barrick Gold stated as late as March of 2012 that the project was “on target to deliver production and significant cash flow by mid-2013.” However, in July of the same year, the corporation finally announced that the project would not be in production until mid-2014 and the costs associated with the project would increase.
Our law firm initiated class action litigation against Barrick Gold Corporation in 2014 on behalf of its shareholders. It has been estimated that the corporation’s shareholders have suffered losses of $3 to $7 billion in U.S. dollars. We hope news of these class action litigation suits will encourage everyone who has been harmed or defrauded in some way to seek legal action against those responsible.