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Kirkland Lake Gold Ltd. Class Action Lawsuit

Case Summary

Company Name
Kirkland Lake Gold Ltd.
Stock Symbol
KL
Class Period
January 8, 2019 to November 25, 2019
Court
Southern District of New York

The Kirkland Lake Gold Ltd. class action lawsuit charges Kirkland Lake Gold and its Chief Executive Officer with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Kirkland Lake Gold common shares between January 8, 2019 and November 25, 2019, inclusive (the “Class Period”).  The Kirkland Lake Gold class action lawsuit was commenced on June 29, 2020 in the Southern District of New York and is captioned Brahms v. Kirkland Lake Gold Ltd., No. 20-cv-04953.

Kirkland Lake Gold owns and operates gold mines in Canada and Australia.  According to the Kirkland Lake Gold class action lawsuit, leading up to November 25, 2019 and unbeknownst to investors, Kirkland Lake Gold was considering acquiring Detour Gold Corporation (“Detour”), an underperforming Canadian exploration and mining company.

The Kirkland Lake Gold class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (i) Kirkland Lake Gold lacked adequate internal controls over financial reporting, especially with regard to its projections of risks, reserve grade, and all-in sustaining costs; (ii) as a result of the known, but undisclosed, impending acquisition of Detour, Kirkland Lake Gold’s projections relating to its risks, reserve grade, and all-in sustaining costs were false and misleading; (iii) Kirkland Lake Gold’s financial statements and projections were not fairly presented in conformity with International Financial Reporting Standards; and (iv) based on the foregoing, defendants’ positive statements about Kirkland Lake Gold’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On November 25, 2019 – following a months-long campaign of rosy projections relating to Kirkland Lake Gold’s key metrics – Kirkland Lake Gold announced that it had entered into a definitive agreement to acquire all of the outstanding securities of Detour for $3.68 billion.  Kirkland Lake Gold’s announcement received a chilly reception from analysts and investors alike who were baffled by the deal’s economics.  On this news, the price of Kirkland Lake Gold shares declined more than 17%.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: January 8, 2019 - November 25, 2019
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