Pomerantz Appointed Lead Counsel in Northern Dynasty Minerals Securities Litigation
On March 17, 2021, U.S. Magistrate Judge Roanne L. Mann of the Eastern District of New York appointed Pomerantz LLP as Lead Counsel on behalf of Lead Plaintiff Lawrence Kelemen in In re Northern Dynasty Minerals Ltd. Sec. Litig., 20-cv-5917 (E.D.N.Y.), a securities action brought on behalf of a class of defrauded investors concerning allegations that Northern Dynasty Minerals Ltd. (“Northern Dynasty” or the “Company”) misled investors regarding the compliance of its mining operations with environmental laws.
Northern Dynasty engages in the exploration of mineral properties in the U.S. Its principal mineral property is the Pebble copper-gold-molybdenum project comprising 2,402 mineral claims that cover an area of approximately 417 square miles located in southwest Alaska (the “Pebble Project”).
Allegations include that: (i) Northern Dynasty’s Pebble Project was contrary to Clean Water Act guidelines and to the public interest; (ii) the Company planned that the Pebble Project would be larger in duration and scope than conveyed to the public; and (iii) as a result, the Northern Dynasty’s permit applications for the Pebble Project would be denied by the U.S. Army Corps of Engineers (“USACE”).
On August 24, 2020, the U.S. Army released a statement concerning the Pebble Project, stating that it would result in “significant degradation of the environment and would likely result in significant adverse effects on the aquatic system or human environment.” The U.S. Army further found that “the project, as currently proposed, cannot be permitted under section 404 of the Clean Water Act.” The U.S. Army requested that the Company submit a mitigation plan in response to this finding. On this news, Northern Dynasty’s common share price fell $0.55 per share, or 37.9%, to close at $0.90 per share on August 24, 2020.
On September 21, 2020, the Environmental Investigation Agency released a recording between investigators and Company executives that demonstrated that Northern Dynasty, contrary to previous public statements, actually planned to build a mine that would last up to 180 years.
On November 25, 2020, Northern Dynasty reported that the USACE had rejected its permit applications related to the Pebble Project. On this news, Northern Dynasty’s common share price fell $0.40 per share, or 50%, to close at $0.40 per share on November 25, 2020, damaging investors.