BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. Message Board

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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.

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To: alan holman who wrote ()	8/19/1999 9:27:00 PM
From: allrich	of 28369

Canada News News Index Thursday, August 19, 1999 8:41pm ET News Search - Input Company Ticker Ticker Symbol Search Brokerages reinstated as defendants in Bre-X suit TEXARKANA, Texas, Aug 19 (Reuters) - Brokerage firms Lehman Brothers, J.P. Morgan and Nesbitt Burns were reinstated as defendants in an amended lawsuit filed Thursday by investors who lost money in the Bre-X gold-mining fraud two years ago. The amended suit was filed in U.S. federal court in Texarkana, Texas, after a judge dismissed the brokerage firms and four other firms as defendants in the case on grounds that the plaintiffs' allegations against them were not specific enough. Also named as defendants are the now bankrupt Canadian firm Bre-X Minerals Ltd., holding company Bresea Resources Ltd, several former Bre-X officials and four other firms. The plaintiffs are seeking unspecified damages against all of the defendants. They have also requested class action status for the case which is scheduled to go to trial in June 2000. Bre-X Minerals Ltd. claimed to have discovered a huge gold deposit at Busang in Indonesia, prompting a surge in the company's stock price on the Toronto Stock Exchange. After the claim turned out to be fraudulent the company's share price collapsed from highs of around 250 Canadian dollars to just a few cents. The amended suit alleges that Bre-X and its officials "intentionally deceived the investing public" about the gold find to profit from the sale of Bre-X stock at inflated prices. It also alleges that J.P Morgan, Nesbitt Burns and Lehman Brothers knew there were doubts about the validity of the Bre-X claims but continued to recommend Bre-X stock to investors. The four other firms named as defendants in the amended suit are Canadian gold producer Barrick Gold Corp., Canadian engineering group SNC-Lavalin Group Inc. and its subsidiaries P.T. Kilborn Pakar Rekayasa and Kilborn Engineering Pacific Ltd.

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