Asanko Gold Inc.
Robbins Arroyo LLP: Asanko Gold Inc. (AKG) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Asanko Gold Inc. (NYSE MKT: AKG) in the U.S. District Court for the Eastern District of New York. The complaint is brought on behalf of all purchasers of Asanko securities between October 24, 2014 and May 31, 2017, for alleged violations of the Securities Exchange Act of 1934 by Asanko’s officers and directors. Asanko engages in the exploration, development, and production of gold properties.
Asanko Accused of Misleading Investors About Its Mining Prospects
According to the complaint, on October 24, 2014, Asanko issued a technical report on the Asanko Gold mine in which the company failed to disclose that its Mineral Resource Estimates were flawed and that its estimates of the company’s ore contents were inflated. On June 30, 2016, hedge fund K2 & Associates Investment Management Inc. published a report asserting that Asanko’s gold resources “don’t add up” and are over-inflated by a factor of two. On this news, Asanko’s shares fell 3% to close at $3.81 per share on June 30, 2016. Then, on May 31, 2017, research firm Muddy Waters published a report asserting that Asanko made investments based on flawed geology in Nkran and that some of the company’s resource models were inaccurate. On this news, Asanko’s stock fell $0.58 per share, or over 31%, to close at $1.29 per share during intraday trading on May 25, 2017.
Asanko Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.