NovaGold Settles Securities Class Action Lawsuits for $28 Million

New Years, NYToronto-based mining company NovaGold has announced that it will settle its outstanding securities class action lawsuits in both Canada and the US for a total of $28 million.

span itemprop="image" itemscope itemtype="https://schema.org/ImageObject" style="display:block">Charges against the company were filed in December 2008 in the US District Court for the Southern District of New York and in October 2009 in Ontario, alleging gross misrepresentations, misstatements and omissions in a series of public statements and filings concerning the company's Galore Creek Property.

The company is accused of describing the property as "economically feasible," despite evidence that the dam constructed on the site would cost much more than the amount they had previously disclosed.

"We are very pleased with the expeditious resolution to this lawsuit," Andrew J Morganti, lead counsel in the Canadian class actions, told the press. "The settlement is fair and in the best interests of our plaintiffs."

Though the settlement is relatively large by most standards, economic consultant Brad Heys tells the National Post that it is a far cry from the median settlement of $43 million for cross-border settlements.