The Financial Post reports in its Tuesday, June 30, edition that Kirkland Lake Gold was sued on Monday in United States federal court for allegedly defrauding shareholders about its business plans before its $4.1-billion purchase of Detour Gold caused its stock to tumble. In a proposed class action filed in U.S. District
Court in Manhattan, shareholder Stephen Brahms accused the Toronto-based miner of making false and misleading statements during 2019 about its risks and two key mining metrics, all-in sustaining costs and reserve grade. Mr. Brahms said the statements artificially inflated Kirkland's share price prior to Nov. 25, 2019, when the Detour purchase was announced and Kirkland shares fell 17.3 per cent in Toronto and 17.2 per cent in New York. Kirkland chief executive officer Tony Makuch was also named as a defendant in the lawsuit, which seeks unspecified damages for Kirkland shareholders from Jan. 8 to Nov. 25, 2019.
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