Northern Dynasty Minerals Ltd. Class Action Lawsuit
- Company Name
- Northern Dynasty Minerals Ltd.
- Stock Symbol
- Class Period
- December 21, 2017 to November 25, 2020
- Eastern District of New York
The Northern Dynasty Minerals Ltd. class action lawsuit charges Northern Dynasty Minerals and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Northern Dynasty Minerals securities between December 21, 2017 and November 25, 2020, inclusive (the “Class Period”). The Northern Dynasty Minerals class action lawsuit was commenced on December 4, 2020 in the Eastern District of New York and is captioned Darish v. Northern Dynasty Minerals Ltd., No. 20-cv-05917.
Northern Dynasty Minerals engages in the exploration of mineral properties in the United States. Northern Dynasty Minerals’ principal mineral property is the Pebble copper-gold-molybdenum project, comprising 2,402 mineral claims, which covers an area of approximately 417 square miles in southwest Alaska (the “Pebble Project”).
The Northern Dynasty Minerals class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Northern Dynasty Minerals’ Pebble Project would violate Clean Water Act guidelines and was contrary to the public interest; (2) the Pebble Project would be larger in duration and scope than Northern Dynasty Minerals had conveyed to the public; (3) thus, Northern Dynasty Minerals’ permit applications for the Pebble Project would be denied by the U.S. Army Corps of Engineers; and (4) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On August 24, 2020, the U.S. Army released a statement concerning the Pebble Project, stating that the project would result in “significant degradation of the environment and would likely result in significant adverse effects on the aquatic system or human environment.” The U.S. Army further found that “the project, as currently proposed, cannot be permitted under section 404 of the Clean Water Act.” The U.S. Army requested that Northern Dynasty Minerals submit a mitigation plan in response to this finding. On this news, Northern Dynasty Minerals’ stock price fell nearly 38%.
Then, on November 25, 2020, Northern Dynasty Minerals reported that the U.S. Army Corps of Engineers had rejected its permit applications related to the Pebble Project. On this news, Northern Dynasty Minerals’ stock price fell an additional 50%, further damaging investors.
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