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.

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.

Michael Schrag

Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.

Eileen Epstein Carney

Eileen works closely with investors in securities cases and has over a decade of experience in the legal world. She received her law degree from American University in 2005.

Dave Stein

David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.

Amanda Karl

Amanda is a member of the legal team in a securities lawsuit against NantHealth alleging false statements to investors about the success of its key product.

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).