Holtan v. Pretium Resources, Inc. et al 1:18-cv-08199-LAP — On September 7, 2018, investors sued Pretium Resources, Inc. (“Pretium” or the “Company”) in United States District Court, Southern District of New York. Plaintiffs in the PVG class action allege that they acquired Pretium stock at artificially inflated prices between July 21, 2016 and September 6, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more about the PVG Lawsuit, please contact us today!

Summary of the Allegations

Company Background

Pretium (NYSE:PVG) engages in the acquisition, exploration and development of “precious metal resource properties” in North, Central and South America.

According to its website, the Company “is creating value through gold by ramping up production of the 100%-owned Brucejack Mine.” Pretium says the mine, which is located near Stewart in northwestern British Columbia, is a “2,700 tonnes-per-day high-grade gold underground mine.” Commercial operations there started in June 2017, with production totaling “230,000 ounces of gold during the first nine months of ramp-up.”

Finally, the Company says a feasibility study initially done in 2014 and updated two years later “has outlined Proven and Probable mineral reserves in Brucejack’s Valley of the Kings comprising 8.1 million ounces of gold (15.6 million tonnes grading 16.1 grams per tonne gold).”

Pretium’s claims about gold production at the Brucejack Mine are at the crux of the September 7 complaint.

Summary of Facts

Pretium and two of its senior officers and/or directors (the “Individual Defendants”) are accused of deceiving investors by lying and withholding critical information about the Company’s business practices and prospects during the Class Period.

Specifically, they are accused of omitting truthful information about the Brucejack Mine from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Pretium stock to trade at artificially inflated prices during the time in question.

The truth surfaced through a series of events that began when the Company issued a press release on January 23, 2018. In it, Pretium “disclosed lower gold production than previously disclosed, and also delayed achievement of steady state gold production and operation of the grade control program.”

Then, on September 6, 2018, Viceroy Research issued a report in which it accused the Company of distorting its mining results. Of significance here is Viceroy’s assertion that: “The overwhelming majority of our research indicates Pretium manipulated results of its bulk sample program through an overreliance on samples taken for the Cleopatra vein, thereby artificially inflating Pretium’s grades and reserve projections for the Brucejack Mine…”

A closer look…

As alleged in the September 7 complaint, the Company and/or Individual Defendants repeatedly made false and misleading public statements during the Class Period.

For instance, in a press release issued July 3,2017, the Company said in pertinent part: “During the month of June, the process plant at Brucejack processed 70,805 tonnes of ore (87.4% of one-twelfth of yearly nameplate capacity) for an average of 2,360 tonnes per day.”

In another press release issued by the Company on September 21, 2017, Pretium said in relevant part: “All of the main operating units in the mill building are performing as expected, and the plant is consistently operating at nameplate capacity of 2,700 tonnes per day or better.”

Lastly, in a press release issued March 8, 2018, Pretium said in relevant part: “During the six months ended December 31, 2017, a total of 532,763 tonnes of ore, equivalent to a through put rate of 2,895 tonnes per day, was processed. The mill feed grade was 9.4 grams per tonne gold and 96.2 percent. We continue to review the mill process to optimize recoveries.”

Impact of the Alleged Fraud on Pretium Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is November 6, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Pretium common stock using court approved loss calculation methods.

Recently Filed Cases

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.