Wolf Haldenstein Investigating NovaGold Resources, Inc.
Attorney Advertising. The law firm of Wolf Haldenstein Adler Freeman & Herz LLP is investigating possible misconduct relating to the securities of NovaGold Resources, Inc.. American investors who purchased NovaGold securities between January 24, 2006 through November 25, 2007, inclusive, (the “Class Period”) may have legal claims under the Canadian securities laws.
Specifically, Wolf Haldenstein is investigating whether during the Class Period certain officers and directors falsely portrayed NovaGold as a rapidly growing copper production company by issuing a series of materially false and misleading statements regarding the costs, progress and viability of its multi-billion dollar Galore Creek project.
During the Class Period the Company issued press releases and statements touting the results of a feasibility study that purportedly “confirmed” the economic viability of the Galore Creek project. The feasibility study estimated the capital costs for the Galore Creek project to be Cdn $2.2 billion. The results of the feasibility study enabled the Company to successfully fend off a hostile takeover bid by mining giant Barrick Gold at $16 per share and allowed the Company to raise hundreds of millions of dollars in an April 2007 secondary stock offering.
The Company regularly and systematically assured the investing public that the construction of the Galore Creek project was on schedule and on budget.
On November 26, 2007, the Company shocked investors when it announced that it would suspend activities at Galore Creek based on the results of an updated feasibility study, which estimated the capital costs for the Galore Creek project to be Cdn $5 billion — approximately 127 percent greater than previously estimated. Upon this disclosure, the Company’s shares declined $10.76 per share, or more than 53 percent, to close on November 26, 2007 at $9.48 per share, on unusually heavy trading volume.
If you purchased NovaGold securities during the Class Period you may have legal claims under the Canadian securities laws.
Wolf Haldenstein has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in U.S. federal and state courts. Please visit the Wolf Haldenstein website http://www.whafh.com for more information about the firm.