Class action suit filed for violations
Golden Rule Resources Ltd GNU
Shares issued 26,654,081 Feb 23 close $0.95
Mon 23 Feb 98 News Release
Mr Robert Roseman reports
A securities class action has been commenced in the US District Court for
the Eastern District of Pennsylvania on behalf of those who purchased the
common stock of Golden Rule Resources during the period October 3 1996
through May 14 1997 (class period).
Golden Rule, directly and through its subsidiaries which it owns and/or
controls, is engaged in the exploration and development of precious metal
properties in the US, Canada, Venezuela, and Ghana, West Africa.
The company operates exploration programs for its own account and on behalf
of its joint venture partners, its subsidiaries, affiliates and other
clients on a contractual and consulting basis.
The complaint alleges that during the class period, Golden Rule, its senior
executives, and the senior executives of related parties, violated sections
10 (b) and 20 (a) of the Securities Exchange Act of 1934 by issuing
materially false and misleading statements relating to Golden Rule's
business operations.
Specifically, the complaint alleges in substance that the defendants
misrepresented both the quantity and quality of gold finds in Golden Rule's
mining operations in Ghana, which were conducted through the company's
Hixon Gold Resources subsidiary.
The complaint further alleges that the defendants made and caused these
materially false and misleading statements to be made in order to
artificially inflate Golden Rule's stock price so that company insiders
could sell their shares of company stock at artificially inflated prices.
The complaint further alleges that, when the truth concerning the results
of mining operations was revealed at the close of the class period on May
15 1997, the market price of Golden Rule's common stock, which had traded
as high as over $13 per share during the class period, plunged to under $3
per share at the close of the class period on May 20 1997, and currently
trades at approximately $0.75 per share.
The plaintiff seeks to recover damages on behalf of all purchasers of
Golden Rule common stock during the class period. He is represented by the
law firm, Spector & Roseman, PC, which has expertise in prosecuting
investor class actions and has extensive experience in actions involving
financial fraud.
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