RADNOR, Pa., July 12, 2017 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Tahoe Resources, Inc. (NYSE: TAHO; TSX: THO) (“Tahoe” or the “Company”) on behalf of purchasers of the Company’s securities between April 3, 2013 and July 5, 2017, inclusive (the “Class Period”).
Investors who purchased Tahoe securities during the Class Period may, no later than September 5, 2017, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit www.ktmc.com/new-cases/tahoe-resources-inc#join.
Tahoe shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at firstname.lastname@example.org.
According to the complaint, Tahoe operates multiple mines to develop precious metals assets in America. On June 8, 2010, upon successful completion of its initial public offering, Tahoe acquired the Escobal mine assets located in Guatemala through its wholly-owned subsidiary Minera San Rafael, S.A. (“MRM”), a Guatemala corporation.
The Class Period commences on April 3, 2013, when Tahoe issued a press release about the Escobal exploitation license from Guatemala’s Ministry of Energy and Mines.
The complaint alleges that, on July 5, 2017, after the market closed, Tahoe issued a press release announcing the suspension of the Escobal mining license. The press release stated, in part, “the Supreme Court of Guatemala has issued a provisional decision in respect of an action brought by the anti-mining organization, CALAS, against Guatemala’s Ministry of Energy and Mines (“MEM”). The action alleges that MEM violated the Xinca Indigenous people’s right of consultation in advance of granting the Escobal mining license to Tahoe’s Guatemalan subsidiary, Minera San Rafael.”
Following this news, the stock price declined from a close of $8.27 per share of Tahoe stock on July 5, 2017, to a close of $5.56 per share on July 6, 2017, a drop of approximately 33%.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose that: (1) Tahoe’s exploitation license of the Escobal mine assets was in violation of the indigenous people’s rights to be consulted; (2) Tahoe was not in compliance with governmental law and regulations; and (3) as a result of the foregoing, the defendants’ statements about Tahoe’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.