In the Tahoe Resources securities case, Faruqi & Faruqi, LLP was appointed sole lead counsel. The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose material adverse information regarding its Escobal mining operation in Guatemala. In particular, the lawsuit alleges that the Company failed to disclose that the consultation obligations regarding its Escobal mining license had not been met, that this failure had the potential to subject its mining license to suspension, and that as a result revenue associated with the Escobal mine was unlikely to be sustainable.
Specifically, after market close on July 5, 2017, the Company announced that the Supreme Court of Guatemala issued a provisional order suspending its license to operate the Escobal mine. The suspension followed a legal action taken against Guatemala’s Ministry of Energy and Mines for violating the indigenous Xinca people’s right of consultation prior to granting the Company its mining license. Following this news, Tahoe’s share price fell from its previous close of $8.30 per share on July 5, 2017, to a closing price of $5.56 on July 6, 2017—a $2.74 or a 33.01% drop.
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Filed on 07/07/2017
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