Gatos Silver (GATO) Securities Lawsuit Investigation

On Tuesday, January 25, 2022, silver mining company Gatos Silver, Inc. (NYSE: GATO) disclosed that it may have overestimated the metal content at its biggest mineral reserve, due to technical errors in its 2020 report, and that it may have to reduce the reserves estimate by as much as 30% to 50%.

Following this news, Gatos Silver stock price dropped as much as 70% in intraday trading on Wednesday, January 26, 2022, causing significant harm to investors.

Lost money in Gatos Silver Stock?

You may be eligible to recover your losses. Get a free and confidential consultation.

(Please provide number of shares, purchase date, and estimated losses.)

loading...

Gatos Silver Reports Significant Errors in 2020 Technical Report

On Tuesday, January 25, 2022, silver mining company Gatos Silver disclosed that it had identified errors in a previously issued technical report titled “Los Gatos Project, Chihuahua, Mexico,” and that the company further identified “indications that there is an overestimation in the existing resource model.” Accordingly, the company “now estimates a potential reduction of the metal content of CLG’s mineral reserve ranging from 30% to 50% of the metal content remaining after depletion,” and further concluded that the “mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon.”

Gatos Silver’s press release states that the company is now working with independent engineering consultants to “better understand the magnitude of the overestimation, including conducting a detailed reconciliation of production to previous models and reserve calculation estimates,” but anticipates that this reconciliation work will not be completed until the second half of 2022.

 

GATO Stock Drops as Much as 70% on January 25, 2022, Harming Investors

Following the news of Gatos Silver’s error-plagued report, the stock plunged as much as 70% on Wednesday, January 26, 2022, causing significant harm to investors. According to the Motley Fool, the news indicates a “huge issue” at Gatos Silver’s mine, which is their “main asset,” and several analysts have downgraded the stock in response.

Our Securities Lawyers Have a Winning Record Against Companies Like Gatos Silver

Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.

You “shouldn’t presume that powerful banks and other powerful interests can just get away with doing bad things. Good, qualified counsel that are committed to a cause can usually figure out how to prosecute such cases effectively and prevail.”

Eric Gibbs, award-winning securities attorney

Praise from the Courts

Federal judge in our AT&T class action:

“I’ve always found them to be extraordinary counsel in terms of their preparation and their professionalism.”

Federal judge in our Chase lawsuit (resulting in $100 million settlement):

They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”

Read more about what judges say about us.

Our Featured Securities Team

Eileen Epstein Carney

Eileen represents investors and consumers harmed by financial fraud and other corporate misconduct. She also executes on the firm's strategic vision.

View full profile

Dave Stein

Dave represents clients in cases nationwide, ranging from securities and financial fraud cases to product liability, privacy, and data breach suits.

View full profile

Amanda Karl

Amanda represents employees, consumers, and sexual assault survivors in complex class actions. She also leads the firm’s Voting Rights Task Force.

View full profile

Gibbs Law Group's Financial Fraud Experience

Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.

We have fought some of the most complex cases brought under federal and state laws nationwide, and our attorneys have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).
titan of plaintiffs bar award
best law firm ranking
chambers USA leading firms award
daily journal top plaintiff lawyers award