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Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Newmont Mining Corporation

Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Newmont Mining Corporation
June 08, 2005 06:34 PM US Eastern Timezone

SAN DIEGO--(BUSINESS WIRE)--June 8, 2005--Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/newmont/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Colorado on behalf of purchasers of Newmont Mining Corporation ("Newmont") (NYSE:NEM) publicly traded securities during the period between July 28, 2004 and April 26, 2005 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at [e-mail]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/newmont/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Newmont and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Newmont is a gold producer with assets or operations in the United States, Australia, Peru, Indonesia, Canada, Uzbekistan, Bolivia, New Zealand, Ghana and Mexico.

The complaint alleges that despite making repeated positive statements about the Company's operations and financial expectations throughout the Class Period, defendants announced on April 26, 2005 that the Company's Q1 2005 earnings would fall short by two-thirds of what analysts had been expecting based on the Company's frequent guidance and investor presentations. Unbeknownst to investors, Newmont's Peruvian, Indonesian, Australian and New Zealand mines had grossly underperformed. On this news, Newmont's stock price fell precipitously from its April 26, 2005 closing price of $40.25 per share to less than $38 per share on April 27, 2005, on extremely high trading volume. Meanwhile, because the Company's stock had traded at inflated prices throughout the Class Period, Newmont was able to place over $600 million worth of notes in March 2005, just weeks before the truth about the Company's operational and financial difficulties would be disclosed.

According to the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) Newmont had been processing only stockpiled low-grade ore at certain mines, which costs more to process; (b) Newmont's costs for commodities used in mining had increased, increasing total production costs and cash production costs; (c) the amount of copper and gold Newmont stated it could extract in 2005 was overstated; and (d) as a result of operating difficulties in Q1 2005, Newmont's cash generation had declined by 50% and its exploration costs would significantly increase.

Plaintiff seeks to recover damages on behalf of all purchasers of Newmont publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Lerach Coughlin, a 150-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.

Contacts

Lerach Coughlin Stoia Geller Rudman & Robbins LLP
William Lerach, 800-449-4900
[e-mail]


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