A class action has been filed against Newmont Mining Corporation (NYSE:NEM), certain of its officers and directors by stockholders who purchased the company's common stock between July 28, 2004 and April 26, 2005. 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.

According to a press release dated June 8, 2005, the complaint charges Newmont and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Newmont is a gold producer with assets or operations in the United States, Australia, Peru, Indonesia, Canada, Uzbekistan, Bolivia, New Zealand, Ghana and Mexico.

Specifically, the complaint alleges that despite making repeated positive statements about the Company's operations and financial expectations throughout the Class Period, defendants announced on April 26, 2005 that the Company's Q1 2005 earnings would fall short by two-thirds of what analysts had been expecting based on the Company's frequent guidance and investor presentations. Unbeknownst to investors, Newmont's Peruvian, Indonesian, Australian and New Zealand mines had grossly underperformed. On this news, Newmont's stock price fell precipitously from its April 26, 2005 closing price of $40.25 per share to less than $38 per share on April 27, 2005, on extremely high trading volume. Meanwhile, because the Company's stock had traded at inflated prices throughout the Class Period, Newmont was able to place over $600 million worth of notes in March 2005, just weeks before the truth about the Company's operational and financial difficulties would be disclosed.

According to the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) Newmont had been processing only stockpiled low-grade ore at certain mines, which costs more to process; (b) Newmont's costs for commodities used in mining had increased, increasing total production costs and cash production costs; (c) the amount of copper and gold Newmont stated it could extract in 2005 was overstated; and (d) as a result of operating difficulties in Q1 2005, Newmont's cash generation had declined by 50% and its exploration costs would significantly increase.

If you bought Newmont Mining Corporation securities between July 28, 2004 and April 26, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.