Shareholders Foundation, Inc.

Gold Resource Corporation (NYSEAMEX:GORO) Investor Alert: Lawsuit Files Lawsuit Against Directors

A lawsuit was filed by an current investor in shares of Gold Resource Corporation (NYSEAMEX:GORO) over alleged breaches of fiduciary duties and NYSEAMEX:GORO stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 

San Diego, CA -- (ReleaseWire) -- 02/26/2013 -- An investor in in shares of Gold Resource Corporation (NYSEAMEX:GORO)) filed a lawsuit against certain directors and officers of Gold Resource Corporation over alleged breaches of fiduciary duty, abuse of control and gross mismanagement.

Investors who are current long term stockholders in shares of Gold Resource Corporation (NYSEAMEX:GORO), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges the defendants’ actions have caused, and will continue to cause substantial financial and reputational damage to Gold Resource Corporation.

The company, which owns six mines in the Mexican state of Oaxaca, is engaged in the exploration for and production of gold and silver.

The plaintiff claims that the Defendants breached their fiduciary duties owed to GRC and its shareholders by causing the Company to release allegedly false and misleading statements regarding the production at the El Aguila project, which is the only property that currently produces gold, overbilling customers for product that the Company never delivered and failing to implement adequate internal financial controls.

Gold Resource Corporation is engaged in the exploration for and production of gold and silver in Mexico’s southern State of Oaxaca. Gold Resource Corporation (NYSEAMEX:GORO) reported that its annual Revenue rose from $14.75 million in 2010 to $105.16 million in 2011 and its Net Loss of $23.07 million in 2010 turned into a Net Income of $60.12 million in 2011.

On July 19, 2012, so the lawsuit, Defendants finally permitted Gold Resource Corporation to make a disclosure, albeit partial, which revealed some of the production issues at the El Aguila project.

However, by August 2012, defendants allegedly continued to cause Gold Resource Corporation to issue fraudulent and misleading statements to investors, declaring that the Company’s production problems were resolved, thereby re-inflating the price of Gold Resource Corporation common stock, so the complaint.

On July 24, 2012 and on August 28, 2012, Gold Resource Corporation (NYSEAMEX:GORO) declared its respective monthly dividends.

On August 9, 2012, Gold Resource Corporation (NYSEAMEX:GORO) announced results for its second quarter ending June 30, 2012. Among other things, Gold Resource Corporation (NYSEAMEX:GORO) said that its production increased 8% over the prior year quarter. For the second quarter in 2012 Gold Resource Corporation (NYSEAMEX:GORO) reported an increase in its second quarter Revenue from $20.66 million in 2011 to $30.01 million in 2012 and that its second quarter Net Income rose from $3.14 million in 2011 to $3.60 million in 2012.

Then on October 17, 2012, after the market closed, Gold Resource Corporation reported its preliminary production results for the third quarter ended September 30, 2012 and revised its production outlook.

Finally, so the plaintiff, on November 8, 2012, Defendants acknowledged that their statements were in fact materially false and misleading.

Those who are current long term investor in shares of Gold Resource Corporation (NYSEAMEX:GORO), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com