Robbins LLP: Goldcorp, Inc. (GG) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Goldcorp, Inc. (NYSE: GG) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Goldcorp securities between March 31, 2014 and August 24, 2016, for alleged violations of the Securities Exchange Act of 1934 by Goldcorp’s officers and directors. Goldcorp engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company owns a gold-silver-lead-zinc mine in north-central Mexico known as the Peñasquito Mine.
Goldcorp Accused of Lying About Contaminated Water Leak at Its Mine
According to the complaint, throughout the class period, Goldcorp submitted several filings with the U.S. Securities and Exchange Commission (“SEC”) certifying that the financial information was accurate and disclosed any material changes to the company’s internal control over financial reporting. The company’s filings further stated that operations at its Peñasquito Mine facility “are currently carried out in accordance with all applicable rules and regulations.” However, the complaint alleges that Goldcorp officials failed to disclose that: (i) levels of the mineral selenium had risen in one groundwater monitoring well near the Peñasquito Mine as early as October 2013; (ii) in October 2014, Goldcorp reported a rise in selenium levels in groundwater to the Mexican government after the contamination near the Peñasquito Mine waste facility intensified; and (iii) in August 2016, Goldcorp told Mexican regulators that contaminated water had also been found in other areas of the Peñasquito Mine.
On August 24, 2016, Reuters published an article stating that Mexican regulators are examining whether Goldcorp broke any regulations in its handling of a long-running leak of contaminated water at the Peñasquito Mine. The article further noted that high concentrations of selenium in water can damage human health and cause deformities in wildlife, and that selenium levels at Peñasquito rose to more than five times the maximum selenium concentration. On this news, Goldcorp stock fell $1.64 per share, or approximately 9%, to close at $16.05 per share on August 24, 2016.
Goldcorp Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.