Kirkland Lake Gold Ltd.

On November 25, 2019, Kirkland announced that it would acquire Detour Gold Corporation (“Detour”) for $3.68 billion. The deal was dilutive to Kirkland’s reserve grade: while Kirkland’s reserve grade was 25 g/t before the deal, Detour’s reserve grade was 0.96 g/t. Moreover, the deal would lead to a 30% increase in Kirkland’s all-in sustaining costs.

On this news, the Company's share price fell as much as $8.18, or over 17%, to close at $39.44 per share on November 25, 2019. 

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Kirkland lacked adequate internal controls over financial reporting, especially as it relates to its projections of risks, reserve grade, and all-in sustaining costs; (2) that as a result of the known, but undisclosed, impending acquisition of Detour Gold Corporation, the Company’s projections relating to its risks, reserve grade, and all-in sustaining costs were false and misleading; (3) that the Company’s financial statements and projections were not fairly presented in conformity with International Financial Reporting Standards; and (4) that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s business, operations, and prospects and/or lacked a reasonable basis and omitted material facts.