A class action lawsuit was filed against SSR Mining Inc. (NASDAQ:SSRM) on March 18, 2024. The plaintiffs (shareholders) alleged that they bought SSRM stock at artificially inflated prices between February 23, 2022 and February 27, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought SSRM stock during that period can learn about joining the lawsuit here: https://zlk.com/pslra-1/ssr-mining-inc-lawsuit-submission-form?wire=16
SSR Mining describes itself as a free cash flow-focused intermediate gold producing and exploration company. It has four producing assets located in the U.S., Turkey, Canada, and Argentina.
The plaintiffs maintain that the company and two of its current and/or senior officers deceived investors by repeatedly lying and withholding vital information about its business practices and prospects during the Class Period. SSRM’s claims about its Çöpler mine along the Tethyan belt in Turkey are at the crux of this lawsuit.
The truth became clear in a series of events between February 13, 2024 and February 27, 2024. On February 13, before the markets opened, SSRM issued a statement about the suspension of operations at the Çöpler mine in Turkey owing to “a large slip on the heap leach pad.” Following this, the company made several announcements and stated that the team members involved in the incident are facing charges and the company is supporting them with regard to the legal process. During an earnings call on February 27, SSRM warned of the impact of the Çöpler mine incident on its FY24 results.
Interestingly, during the Class Period, the defendants consistently emphasized the expertise of its workers and adherence to safety standards at the mining sites. The company even maintained that it undertakes regular checks at the sites to ensure that all safety protocols are followed.
As per the class action lawsuit, SSR Mining caused SSRM stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about the Company’s mining practices, the efficacy of its safety measures, and ancillary issues.
Notably, on February 13, 2024, SSRM stock plunged by 53.7%, causing massive damage to shareholders’ returns.
