Gatos Silver, Inc. focuses on the production, development and exploration of silver- and zinc-rich mineral deposits.

A securities fraud class action has settled for $21,000,000.  The underlying Complaint alleges that Gatos, via certain of its officers and directors, made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, it is alleged that Defendants failed to disclose to investors: (1) that the technical report for Gatos’s primary mine, the Cerro Los Gatos deposit, contained certain errors; (2) that, among other things, the mineral reserves had been overestimated by as much as 50%; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On July 13, 2023, the parties entered into a Stipulation and Agreement of Settlement. On July 17, the Court denied the pending Motion to Dismiss the amended Complaint as moot in light of the proposed Settlement.

Current shareholders who have held Gatos Silver since on or shortly after its October 28, 2020 IPO, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.

If you would like to learn more about this matter, you are encouraged to contact us at jgrabar@grabarlaw.com, or call 267-507-6085.