SIPA
Small Investor Protection Association
a voice for small investors
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Class ActionsStephen E. Cauley Class Action re: Ashanti GoldfieldsFraud Lawsuit Filed on Behalf of Purchasers of Ashanti Goldfields Company Limited, Inc. Common Stock Monday March 27, 7:00 pm Eastern Time The Law Offices of Steven E. Cauley, P.A. announced today that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of all persons who purchased the common stock of Ashanti Goldfields Company Limited, Inc. (NYSE: "Ashanti'' or the "Company'') between July 28, 1999, and October 5, 1999, inclusive (the Class Period). LITTLE ROCK, Ark., March 27 /PRNewswire/ -- The following is an announcement by the Law Offices of Steven E. Cauley, P.A: The Law Offices of Steven E. Cauley, P.A. announced today that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of all persons who purchased the common stock of Ashanti Goldfields Company Limited, Inc. (NYSE: "Ashanti'' or the ``Company'') between July 28, 1999, and October 5, 1999, inclusive (the Class Period). The complaint charges Ashanti and certain of its senior officers with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of materially false and misleading statements concerning the Company's hedging strategy, ostensibly designed to protect Ashanti against fluctuations in the price of gold. The complaint further alleges that defendants' statements during the Class Period misrepresented and concealed the true risks present in the Company's hedge book and concealed the Company's exposure to the volatility in the price of gold. On October 5, 1999, the complaint alleges, Ashanti announced that its hedge book had turned ``negative'' by over $450 million and that the Company would be required to meet massive margin calls which it did not have the capital to meet. In response to the Company's belated disclosures the price of Ashanti common stock fell over 56% to close at $4.125 per share on October 6, 1999. The Law Offices of Steven E. Cauley have substantial experience in prosecuting class action lawsuits on behalf of investors, and recently obtained a $25 million settlement for certain purchasers of Medpartners securities. If you wish to serve as one of the lead plaintiffs in this lawsuit you must file the appropriate motion with the court no later than sixty days from February 3, 2000. If you have any questions regarding this lawsuit or how you may be able to recover for the losses you have incurred, please E-mail or call: LAW OFFICES OF STEVEN E. CAULEY, P.A. |