Suit claims Barrick misled investors

Two U.S.-based law firms have launched a class-action suit against Barrick Gold (ABX-T) for allegedly misleading investors by forecasting higher earnings than the company delivered last year.

Barrick, the world’s third-largest gold producer, is being sued by New York City-based Bernstein Liebhard & Lifshitz and Rabin, Murray & Frank. The firms asked a federal court in New York, N.Y., to grant them class-action status on behalf of all investors who bought Barrick stock between Feb. 14 and Sept. 26, 2002.

Statements filed in court say Toronto-based Barrick issued a series of “materially false and misleading statements,” failed to disclose that its mining costs would rise and that it would not be meeting earnings forecasts of US42-47 per share for the year. Barrick reduced its forecast Sept. 26, saying earnings would be US33-35 per share.

The complaint made by Rabin, Murray & Frank LLP names Randall Oliphant, John Carrington and Jamie Sokalsky as defendants.

The charges have yet to be proved in court.

New York City law firms Milberg Weiss Bershad Hynes & Lerach and Cauley Geller Bowman & Rudman filed similar lawsuits in June.

Company spokesman Vince Borg says Barrick did nothing wrong and provided the information as it became available.

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