Northern Dynasty Minerals Ltd (NYSEMKT: NAK) is having a rough day in the market today, and for good reason. Investors were reminded of a class action suit against the company. Of course, this led to fear among investors who pushed the stock downward. As is almost always the case, our partners at Trade Ideas were the first to alert us to the trend. At the moment (11:21), NAK is trading at $1.68 per share after a loss of $0.14 per share or 7.42% thus far today.
NAK Investors Reminded Of Class Action
As mentioned above, Northern Dynasty Minerals is having a rough day in the market today after investors were reminded of a class action suit against the company. Early this morning, Bronstein, Gewirtz & Grossman, LLC released a PR reminding investors of a suit filed against NAK and encouraged investors to get involved.
The class action suit against NAK was filed to recover damages for against the the defendants for alleged violations of the federal securities law under the Securities Exchange Act of 1934. The suit claims the company did 3 things wrong…
- According to the suit, the NAK Pebble Project (which just got permitted to continue operations), is commercially unviable.
- The Pebble project had a negative present value.
- Consequently, NAK statements about the business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on NAK. In particular, we’re interested in following the company through the suit to see if anything comes of it. Considering recent news surrounding the Pebble project, there is definitely a strong argument on both sides. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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