As a former owner of the common stock, I recently received documentation in the mail indicating that a filing for a class action has been filed in the United States District Court, Southern District of New York for those that purchased the common stock of KGC between February 16, 2011 and January 17, 2012.
The complaint lists the defendants as Kinross Gold Corporation, Tye W. Burt, Paul H. Barry, Glen Masterman and Kenneth G. Thomas. The complaint charges the company and its officers and directors with violations of the Securities Exchange Act of 1934.
The complaint is alleging that the defendants issued a "materially false and misleading statement regarding the Company's business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that the drilling results at the Kinross Tasiast Property had exhibited high amounts of low-grade ores and that because of this the company would need to modify its mining processes to help minimize operating costs and maximize profitability; (b) that, as a result of the foregoing circumstances, applicable accounting standards required the Company to record an impairment in the value of goodwill…"
It goes on to state that the financial statements were not fairly presented and were materially false and misleading and that they lacked a reasonable basis for their positive statements.
The press release disclosed that the "Company expects to record a material no-cash accounting charge, primarily relating to the goodwill recorded for the Tasiast mine," which was totaled to be $4.6 billion.
In response to the Company's announcement, the shares of KGC tumbled 19% in a four-day stretch.
For those that want to join the class action, they must do so prior to April 16, 2012.
Disclosure: I do not own KGC and sold prior to this information being sent.