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7/10/13

Aurcana Corp (AUN.v) class action update: Game on

On May 23rd, your humble scribe published the post "The potential for a class action suit against Aurcana Corp (AUN.v)". The note included this extract...
"...the post today isn't about a dose of them there sour grapes (it's only money, after all) and more about how I'm sick and tired of having to listen to, read and pay attention to liars and scumballs in the mining industry such as Lenic Rodriguez, Pres/CEO of Aurcana. What we have in this case isn't a subjective opinion that he's a liar either, as the company's own words make it abundantly clear that AUN.v told outright falsehoods to the market in December 2012. As such, and considering the hefty share price drop between then and now, AUN.v looks ripe for a potential class action suit."

...and went on to make clear the falsehood about its 600tpd commercial mining rate at Shafter.

Today, July 10th, we get this on the wires:
WINDSOR, ON, July 10, 2013 /CNW/ - A proposed class action has been commenced in the Ontario Superior Court of Justice against Aurcana Corporation (AUN.V).  The plaintiff has retained Sutts, Strosberg LLP, a law firm that represents investors in securities class actions, to prosecute the action.
The proposed class action concerns the circumstances surrounding Aurcana Corporation's April 12, 2013 announcement that its Shafter Mine had not reached its initial production target of 600 tons per day on a continuous basis.  Since the announcement, the company's share price has declined significantly. 
Shareholders may visit the website www.aurcanaclassaction.com to learn more about the proposed class action.  Shareholders who wish to discuss the matter should contact Jay Strosberg at 519.561.6296 or by email at jay@strosbergco.com
Sutts, Strosberg LLP is a leading class action law firm that has recovered over $1.5 billion for its clients. 
SOURCE: Sutts, Strosberg LLP Barristers & Solicitors

Now that is interesting and immediately, Aurcana (AUN.v) responds with...
Aurcana has noted a press release of Sutts, Strosberg LLP, a law firm located in Ontario that engages in plaintiff class-action lawsuits, in which Sutts, Strosberg has asked Aurcana's shareholders to contact it in relation to declines in Aurcana's stock price in recent months. While Aurcana's management is not pleased with the recent trend in Aurcana's stock price, it does not believe that the current stock price reflects the underlying value of the Company, and it notes that there have been significant declines in the stock prices of almost all silver producers over this period. There is no basis for a class-action claim in relation to Aurcana's stock price.

...which is also interesting, considering how quick it was off the mark. That shyster and two-faced piece of crap Lenic Rodriguez must be running scared, at least for enough time to get him off that yacht of his, cruising round the Med. This is a story worth watching.