Pretium Resources, Inc.

19 days left to seek lead plaintiff status

Case Summary

Company Name
Pretium Resources, Inc.
Stock Symbol
Class Period
July 21, 2016 to September 6, 2018
Motion Deadline
November 6, 2018
Southern District of New York

The complaint charges Pretium and certain of its officers with violations of the Securities Exchange Act of 1934.  Pretium explores for, acquires and develops precious metal resource properties in the Americas.

The Company’s Brucejack Project is a mine located in northwestern British Columbia comprising four mining leases and six mineral claims.  The Valley of the Kings mineral reserve, the heart of the Brucejack Project, is the only material mineral project that Pretium is required to report under Canadian reporting regulations and is therefore essential to Pretium’s business and to the public market valuation of Pretium.

The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations and prospects.  Specifically, the complaint alleges that contrary to defendants’ Class Period statements regarding the Brucejack Project, and in particular the Valley of the Kings mineral reserve, it was not a high-grade, high-output mine, and the Company had been “distort[ing]” the mining results for the Brucejack Project.  As a result of defendants’ false statements and/or omissions, Pretium securities traded at artificially inflated prices during the Class Period, with the Company’s share price hitting highs of more than $12 per share.

On January 23, 2018, the Company disclosed lower gold production than previously announced and also that the achievement of steady state gold production and the operation of its mine grade control program would be delayed to mid-to-late 2018 and the first quarter of 2018, respectively.  On this news, the price of the Company’s shares fell over 26% to close at $7.93 per share.

Then on September 6, 2018, Viceroy Research published a report regarding Pretium.  The report stated that the “overwhelming majority of our research indicates Pretium manipulated the results of its bulk sample program . . . thereby artificially inflating [its] grades and reserve projections for the BruceJack” Project.  According to the report, the Company’s “reported grades and reserves are significantly inflated, a much greater amount of waste is being dumped into local lakes, and more explosives are being utilized.”  The report further stated that “management is scrambling to find consistent, high-grade ore to maintain the charade that its debt and equity are viable.”  On this news, the price of Pretium shares fell $0.77 per share, or nearly 10%, to close at $6.94 per share on September 6, 2018.

Class Period: July 21, 2016 - September 6, 2018
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