A second law firm has filed a class-action suit against Crystallex International (KRY-T), a former high-flyer that crashed and burned after a Venezuelan court dismissed its purported effort to “enforce rights” to the Las Cristinas gold deposit in Venezuela.
The court found that Crystallex had no such “rights,” and even if it did, it had no case or legal standing to sue the Venezuelan Ministry of Mines over the granting of mineral rights to the current owners.
Last month, the New York-based firm of Rabin & Peckel launched a class-action against Crystallex. In mid-August, class-action specialist Milberg Weiss filed a second class-action in federal district court in New York.
The latest complaint alleges that Crystallex and various officers and directors used a “series of materially false and misleading statements that resulted in an artifically inflated price of common shares.”
Many of the claims about the merits of Crystallex’s lawsuit were made outside of normal disclosure channels, particularly on the Internet, and to a select group of faithful supporters.
Crystallex is currently trading at less than $1, well below its high of more than $11. The company has a mine in Venezuela, which produces more red ink than gold. It is also seeking to buy the San Gregorio gold mine in Uruguay from the trustees of bankrupt Rea Gold.
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