Hmmm,food for thought.
Monday May 12 11:00 AM EDT
Company Press Release
Class action suit filed against Delgratia Mining Corporation and its
officers and directors alleging misrepresentations and false financial
statements
SAN FRANCISCO--(BUSINESS WIRE)--May 12, 1997--A class action has been commenced in the United States
District Court for the District of Nevada on behalf of purchasers of the common stock of Delgratia Mining Corporation
(``Delgratia'') between November 18, 1996 to April 11, 1997, inclusive.
The complaint charges Delgratia and certain of its officers and directors with violations of the federal securities laws and
alleges that defendants made false and misleading statements about Delgratia's Nevada gold project. Prior to announcing
that Delgratia had ``struck gold,'' the Company's stock had traded for as little as $3-1/2. However, after Delgratia's false
claims of substantial gold reserves were widely disseminated in February of 1997, Delgratia shares quadrupled, reaching a
high of $34-3/4 on March 19, 1997.
On March 20, 1997, Delgratia's scheme began to unravel as a Nevada mining official questioned the Company's
disclosures relating to its Nevada gold project. Delgratia stock dropped, dropping 50% to $16 per share on trading
volume of 3.1 million shares. NASDAQ halted trading for three weeks and the Company was forced to retract its claims
that the Nevada gold project contained five million ounces of gold reserves. Trading resumed on April 11, 1997, and the
price of Delgratia's stock reacted sharply to the revelation of truth by dropping $6-3/4, or approximately 40% on volume
of 2.2 million shares, more than ten times Delgratia's average daily volume.
Plaintiffs seek to recover damages on behalf of all purchasers of Delgratia common stock during the Class Period (the
``Class''). They are represented by several law firms, including Wolf Haldenstein Adler Freeman & Herz LLP, Milberg
Weiss Bershad Hynes & Lerach LLP, Hellmuth & Johnson, P.A., and Law Offices of Leo Desmond who have expertise
in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Wolf Haldenstein and Milberg Weiss have been actively engaged in commercial litigation, emphasizing securities and
antitrust class actions, for more than 20 years. Both firms are active in major litigation pending in federal and state courts
throughout the United States. The firms' reputations for excellence have been recognized on repeated occasions by courts
which have appointed the firms to major positions in complex multi-district or consolidated litigations. Wolf Haldenstein and
Milberg Weiss have taken a lead role in numerous important actions on behalf of defrauded investors, and have been
responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars. The securities
litigation practice of Hellmuth & Johnson, P.A. is headed by Randall H. Steinmeyer who has experience in recovering
monies on behalf of defrauded investors. Leo Desmond is also experienced in prosecuting investor class actions and
actions involving financial fraud. For additional information about the firms: see Wolf Haldenstein's website at
whafh.com; Milberg Weiss's website at milberg.com; and Leo Desmond's website at
stockfraud.com.
If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as
lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal
requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests,
please contact plaintiffs' counsel, Francis M. Gregorek or Betsy Manifold of Wolf Haldenstein at 800/575-0735, or
William Lerach or Darren Robbins of Milberg Weiss at 800/348-6192, or Randall H. Steinmeyer of Hellmuth & Johnson,
P.A. at 612/941-4005 or Leo Desmond of the Law Office of Leo Desmond at 888/337-6663.
More news for related industries: banking, mining.
Additional quotes and news: DELGF (news). |
