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Lead plaintiff voluntarily withdraws lawsuit against Asanko Gold

A potential class-action securities lawsuit filed against Asanko Gold Inc. and several executives in the U.S. District Court for the Eastern District of New York was voluntarily dismissed by the lead plaintiff, the company said Dec. 11.

The lawsuit claimed the company made misstatements or omissions in a technical report and a press release relating to its mineral resources estimates.

Asanko did not pay any consideration in connection with the dismissal.

The lawsuit stemmed from investment company Muddy Waters LLC's report that claimed "flawed geology" led Toronto-listed Asanko to unrecoverable investments in Nkran, Esaase and various satellite deposits, at its namesake gold project in Ghana, and that the company was headed for bankruptcy.

A string of other law firms are investigating potential securities claims on behalf of shareholders after the report.