Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against DRDGOLD Limited
June 13 2005 - 5:13PM
Business Wire
Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach
Coughlin") (http://www.lerachlaw.com/cases/drdgold/) today
announced that a class action lawsuit has been commenced in the
United States District Court for the Southern District of New York
on behalf of purchasers of DRDGOLD Limited ("DRDGOLD")
(NASDAQ:DROOY), formerly known as Durban Roodepoort Deep, Limited,
securities during the period between October 23, 2003 and February
24, 2005 (the "Class Period"). If you wish to serve as lead
plaintiff, you must move the Court no later than 60 days from
today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of
Lerach Coughlin at 800/449-4900 or 619/231-1058 or via e-mail at
wsl@lerachlaw.com. If you are a member of this class, you can view
a copy of the complaint as filed or join this class action online
at http://www.lerachlaw.com/cases/drdgold/. Any member of the
purported class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member. The complaint charges DRDGOLD and
certain of its officers and directors with violations of the
Securities Exchange Act of 1934. DRDGOLD is a gold exploration and
mining company. The Company operates gold mines through its South
African and Australasian operations. The complaint alleges that,
throughout the Class Period, defendants made numerous statements
regarding: (i) the successful restructuring of the Company's North
West Operations in South America; (ii) the Company's ability to
reduce the negative impact of the increasing value of the South
African Rand versus the U.S. Dollar; and (iii) the increasing
strength of the Company's balance sheet. In truth and in fact, the
Company's problems with its North West Operations were never fully
resolved and resulted in the Company being forced to record an
impairment charge for the full value of its mining assets there.
Moreover, despite representations to the contrary, the Company
continued to be negatively impacted by the increasing value of the
South African Rand. As detailed in the complaint, these problems
resulted in the Company being forced to announce that it might not
be able to operate as a going concern. When this information was
belatedly disclosed to the public, shares of DRDGOLD fell more than
25%, on extraordinarily heavy volume. Plaintiff seeks to recover
damages on behalf of all purchasers of DRDGOLD securities during
the Class Period (the "Class"). The plaintiff is represented by
Lerach Coughlin, which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial
fraud. Lerach Coughlin, a 150-lawyer firm with offices in San
Diego, San Francisco, Los Angeles, New York, Boca Raton,
Washington, D.C., Houston, Philadelphia and Seattle, is active in
major litigations pending in federal and state courts throughout
the United States and has taken a leading role in many important
actions on behalf of defrauded investors, consumers, and companies,
as well as victims of human rights violations. Lerach Coughlin
lawyers have been responsible for more than $20 billion in
aggregate recoveries. The Lerach Coughlin Web site
(http://www.lerachlaw.com) has more information about the firm.
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