Los Angeles-based Lundin Law PC has launched a class action lawsuit against Asanko Gold Inc. for possible violations of federal securities laws between Oct. 24, 2014, and May 31, 2017.
This latest lawsuit follows a string of other law firms announcing that they are investigating potential securities claims on behalf of shareholders after investment firm Muddy Waters LLC released a scathing report alleging Asanko's resource estimates were flawed.
Lundin Law on May 31 alleged that Asanko made false and misleading statements relating to its resource estimates for the Nkran mine and satellite deposits, including Esaase, in Ghana.
Muddy Waters claims that some of the company's resources models exhibit signs that they have been "smeared," which would cause estimates of their ore contents to be inflated.
Following the release of the report, Asanko shares tumbled more than 30%, which Lundin said "caused investors harm."
Meanwhile, Oakland-based law firm Girard Gibbs LLP revealed that it is also investigating potential claims on behalf of investors in Asanko Gold.