Gold Resource Corporation Successfully Defends Against Securities Class Action and Shareholder Derivative Lawsuits
COLORADO SPRINGS, CO--(Marketwired - Apr 20, 2015) - Gold Resource Corp. (NYSE MKT: GORO) (the Company) today updates its shareholders on its successful defense against the securities class action and shareholder derivative lawsuits filed against the Company in late 2012. Gold Resource Corp. is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned over $103 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
The U.S. District Court for the District of Colorado dismissed the securities class action lawsuit against the Company with prejudice on July 15, 2014. When a case is dismissed with prejudice, the court has made a final determination on the merits of the case and the plaintiffs are therefore forbidden from filing another lawsuit based on the same grounds. The plaintiffs, Nitesh Banker, Scott Cantor, Robert D. Rhodes and their attorneys, appealed the District Court's ruling to the Tenth Circuit Court of Appeals and on January 16, 2015, the Court of Appeals issued a ruling upholding the District Court's dismissal with prejudice. The deadlines for plaintiffs to file for rehearing or further appeal the Tenth Circuit's decision expired in mid-April. With respect to the shareholders' derivative lawsuit, the parties agreed to stay the proceedings pending the outcome of the motion to dismiss and appeal in the securities class action lawsuit. In light of the Tenth Circuit's ruling to uphold dismissal with prejudice, the parties in the shareholder derivative case agreed to voluntarily dismiss the proceedings, which was granted by the District Court on February 25, 2015. Both lawsuits are now closed in favor of Gold Resource Corp..
"We are pleased that these proceedings are finally resolved and behind us," stated Gold Resource Corp.'s CEO and President, Mr. Jason Reid. "In addition to the waste of time and valuable corporate resources, the damage to the Company's reputation, share price and corresponding decrease in shareholder value was evident following the filing of these frivolous law suits. We believe many of these type of lawsuits are in large part driven by a particular business model where the goal is to try to collect quick hostage payments from companies who do not want to endure the time and expense of litigation. Our counsel at Latham & Watkins and at Gibson, Dunn & Crutcher performed an excellent job in our defense and we thank them tremendously for their efforts. If there is a silver lining here, it is that Gold Resource Corp. did not fall victim to making a hostage payment and thus the plaintiffs and their attorneys bore their own costs in this process. We have no desire to countersue for damages or waste another cent of shareholder money or another second of management's time on these frivolous lawsuits. I am pleased to be able to now focus all our efforts, time and capital more efficiently on building the company."
About GRC:
Gold Resource Corp. is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in six potential high-grade gold and silver properties at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA Mining Unit. The Company has 54,179,369 shares outstanding, no warrants and no debt. Gold Resource Corp. offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
Cautionary Statements:
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corp.'s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corp. on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's 10-K filed with the SEC.
Contact
Contacts:
Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com