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Case ID: 3670 | Stocks | 09/17/2004
The class has been certified in several consolidated actions filed against Ahsanti Goldfields, Ltd., on behalf of all persons who purchased or otherwise acquired the company’s Global Depository Receipts in transactions on stock exchanges in the US between April 21, 1997, and October 5, 1999. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
The action alleges the following: (1) that Ashanti’s “strategic aim” was to “maintain a high level of protection” as the increase in its “hedge” book was not solely related to protecting it against fluctuations in the price of gold but rather was to a dangerous degree a “reckless” bet that the price of gold would fall, and was actually an attempt to generate revenue for Ashanti; (2) that the reported market-to-market value of the company’s “hedge” book, $290 million, was materially misleading because it concealed Ashanti’s extreme sensitivity to gold volatility or sudden price movements, an eventuality against which the “hedge” book was supposed to protect; and (3) it was not true that the company had eliminated any exposure to floating lease rates-- its “hedge” book had indeed been negatively impacted by floating lease rates. Ashanti’s statements also concealed and omitted material adverse information including: (4) that it was employing option contracts to increase income, assuming enormous risk in its “hedge” book -- these contracts exposed the company to insurmountable liabilities should the price of gold rise or become volatile; (5) that the increase in the company’s “hedge” position could expose it to substantial margin calls should the price of gold rise or become volatile, because it lacked the cash to meet those margin calls. The company increased risks in its “hedge” position and took the undisclosed risk that it would find itself unable to meet the obligations it had assumed. The terms of the options contracts in its “hedge” book, including the strike prices and margin call requirements, were such that Ashanti could (and did) suffer extreme losses and margin call requirements when gold prices rose/became more volatile. The mark-to-market value of the company’s “hedge” book fell as low as negative $570 million on October 9, 1999. Persons eligible to take part in this action need do nothing at the present time to remain members of the class. More information may be available by contacting the attorneys for the class. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest Several class actions have been filed against pharmaceutical research and development company Entropin, Inc. (OTC BB:ETOP), and certain of its officers and directors on behalf of purchasers of stock and warrants in Entropin's March 15, 2000, public offering through which investors purchased units consisting of one share of common stock and one common stock purchase warrant. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of the company's securities. A class action has been filed against Baxter International, Inc., a global health care products maker, (NYSE: BAX) and certain of its officers and directors by stockholders who purchased the company’s common stock between April 19, 2001 and July 21, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The parties have reached a $20 million settlement in an administrative proceeding filed by the SEC against subsidiaries of Conseco, Inc. (CIHC, Inc., Conseco Services, LLC, and Conseco Equity Sales, Inc.), and the company to which Conseco sold its variable annuity business in 2002, Inviva, Inc., and its subsidiary Jefferson National Life Insurance Company. The action alleged that the insurance companies facilitated market timing of mutual funds through the sale of variable annuities, harming investors who purchased variable annuity products from the companies. Persons eligible to take part in the settlement should contact the attorneys who prosecuted the case for more information. A class action has been filed against Abatix Corporation, a supplier of safety, construction, restoration, and homeland security products, (NASDAQ: ABIX) and certain of its officers and directors by stockholders who purchased the company's common stock between 4/14/04 to 4/16/04. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. Several class actions have been filed against networking company Nortel Networks Corporation (NYSE:NT) and certain of its officers and directors by stockholders who purchased the company's common stock between December 23, 2003, and March 12, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. Several class actions have been filed against postsecondary education provider ITT Educational Services, Inc. (NYSE:ESI) and certain of its officers and directors by stockholders who purchased the company's common stock between October 16, 2003, and February 25, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. |
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