November 23, 2020 - An amended complaint was filed.

June 29, 2020 - An investor in shares of Kirkland Lake Gold Ltd. (NYSE: KL) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Kirkland Lake Gold Ltd. in connection with certain allegedly false and misleading statements made between January 8, 2018 and November 25, 2019.

Toronto, Canada based Kirkland Lake Gold Ltd. engages in the acquisition, exploration, development, and operation of gold properties. Kirkland Lake Gold Ltd. reported that its annual Total Revenue rose from $915.91 million in 2018 to over $1.37 billion in 2019 and that its Net Income increased from $273.94 million in 2018 to $560.08 million in 2019.

On November 25, 2019, Kirkland announced that it would acquire Detour Gold Corporation ( Detour ) for $3.68 billion. The deal was dilutive to Kirkland’s reserve grade: while Kirkland’s reserve grade was 25 g/t before the deal, Detour’s reserve grade was 0.96 g/t. Moreover, the deal would lead to a 30% increase in Kirkland’s all-in sustaining costs. Shares of Kirkland Lake Gold Ltd. (NYSE: KL) declined from $49.78 per share on November 20, 2019 to as low as $37.75 per share on November 26, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Kirkland Lake Gold Ltd. (NYSE: KL) common shares between January 8, 2018 and November 25, 2019, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between January 8, 2018 and November 25, 2019, the defendants made false and/or misleading statements and/or failed to disclose that Kirkland lacked adequate internal controls over financial reporting, especially as it relates to its projections of risks, reserve grade, and all-in sustaining costs, that as a result of the known, but undisclosed, impending acquisition of Detour Gold Corporation, the Company’s projections relating to its risks, reserve grade, and all-in sustaining costs were false and misleading, that the Company’s financial statements and projections were not fairly presented in conformity with International Financial Reporting Standards, and that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s business, operations, and prospects and/or lacked a reasonable basis and omitted material facts. When the true details entered the market, the lawsuit claims that investors suffered damages.