On February 9, 2022, Siskinds LLP, Eighty-One West Law PC, and Camp Fiorante Matthews Mogerman LLP initiated a class action against Gatos Silver, Inc. (TSX: GATO) and other defendants.
Gatos is a US-based precious metals production and exploration company focused primarily on silver. Their key operating project is the Cerro Los Gatos (“CLG”) mine in Chihuahua, Mexico. The action alleges, among other things, that the defendants misrepresented the reliability of mineral reserve and resource estimates pertaining to CLG.
The plaintiff alleges that these misrepresentations were corrected on January 25, 2022, when the Company announced that there were errors in the technical report connected to CLG. When this news was revealed to the market, the value of Gatos’s shares declined by almost 70%.
The proposed class action is brought on behalf of investors who acquired Gatos’s securities between October 28, 2020 and the January 25, 2022 news release.
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Contact Tyler Planeta by email at [email protected] or phone 416.594.4588 - toll-free at 1.800.461.6166
FAQs
What is a class action?
A class action is a lawsuit that is brought by one or more persons on behalf of a larger group of people whose claims share common legal and/or factual issues. Class actions provide a cost-effective way for groups of people with common interests to pursue a legal claim.
What does “certification” mean?
Certification is the motion where the court determines whether the action can properly be pursued as a class action. The court will consider factors such as whether the claims of the class members raise common legal and/or factual issues and whether a class action is the preferable method of pursuing the claims (as opposed to other methods, such as individual actions).
Do I have to pay anything to participate in the class action?
Class action lawyers are usually paid on a contingency basis. This means that class counsel are only paid if successful. Class counsel are paid a percentage of any settlement or court award. Class counsel fees are subject to court approval.
Can I join the class action?
There are no steps required to “join” the class action. Assuming you fall within the scope of the class definition, you are automatically included in the class action unless you “opt-out” (exclude yourself from the class action).
Can I opt-out of the class action?
Yes. Once the class action has been authorized or certified, you will have the opportunity to opt-out of the class action within a period of time to be determined by the Court. If you exclude yourself, you will not be entitled to any compensation awarded under a settlement agreement or court order. You may however pursue your own action on an individual basis.
Generally, class members will wish to exclude themselves from a class action if they intend to bring their own individual action. In the majority of cases, it will be more economical to participate in the class action because the legal costs will be shared among a very large number of people.
I still have a question. Who should I contact?
If you have any other questions, please complete the contact form below or call 1-800-461-6166.