City of Austin Police Retirement System v. Kinross Gold Corp.
The Firm served as lead counsel in City of Austin Police Retirement System v. Kinross Gold Corp., No. 12-cv-01203 (PAE) (S.D.N.Y.), a securities fraud class action against Kinross Gold Corporation (“Kinross”) (NYSE: KGC) and certain of its former senior officers. On May 26, 2015, a $33 million settlement in cash was preliminarily approved. The settlement represents approximately 21% of the maximum estimated damages per share for the class.
The complaint alleged that executives of Kinross, a mining company, knowingly issued a false and misleading development schedule for the company’s largest gold mine to inflate the company’s share price. Investors were damaged when the company revealed that it was postponing development of the mine causing the price of Kinross’s stock to drop approximately 19%, erasing $4.1 billion in market capitalization in one day.
A settlement of $33 million was granted final approval on October 15, 2015. The Firm successfully negotiated the settlement while Daubert and summary judgment motions were pending.