At least three law firms are investigating potential securities claims on behalf of shareholders of Asanko Gold Inc., alleging that the company may have issued materially misleading business information to investors.
The Rosen Law Firm PA is preparing a class action lawsuit to recover losses suffered by Asanko investors, it said May 31, noting a same-day report published by research firm Muddy Waters.
The research report asserted that Asanko made investments based on flawed geology at its Nkran gold mine and satellites, including the Esaase property in Ghana, suggesting the funds "will never be recovered."
Additionally, the report indicated that some of Asanko's resource models were "smeared," which would cause inflation of ore content estimates.
Rosen Law noted that after the news broke, shares in Asanko "fell sharply" and were down by some 31.02% on May 31, damaging investors.
Faruqi & Faruqi LLP and Goldberg Law PC are also investigating potential securities fraud at Asanko.