ANCHORAGE, Alaska (AP) — The company behind a proposed copper and gold mine in Alaska faces lawsuits from investors claiming it misled shareholders who have seen an 85% drop in stock value since the summer.
Two lawsuits filed in U.S. District Court in New York claim Northern Dynasty Minerals violated federal securities law when project executives did not fully provide information about the project, The Anchorage Daily News reported Friday.
Developer The Pebble Limited Partnership and parent company Northern Dynasty Minerals Ltd. sought to build a mine about 200 miles (320 kilometers) southwest of Anchorage and near the headwaters of the world’s largest sockeye salmon fishery in Bristol Bay.
The project was criticized by environment groups and also condemned by Alaska Republican U.S. Sens. Dan Sullivan and Lisa Murkowski.
The U.S. Army Corps of Engineers in late November denied a permit request, causing the company stock to lose half its value that day alone. Pebble Limited Partnership said it is appealing that decision, calling the rejection political.
McCarthy Lodge co-owner Neil Darish was named as lead plaintiff in a lawsuit filed Dec. 4. The lawsuit, similar to a complaint filed in mid-December, accused the company of making “materially false and misleading statements,” and failing to disclose the project was not in line with federal law and was much larger than proposed.
Northern Dynasty spokesperson Sean Magee said the company could not comment on pending litigation.
The company previously said it had no formal, defined plans for the proposed mine other than the 20-year plan submitted to the U.S. Army Corps of Engineers for approval, adding that additions would have required new state and federal reviews.
Darish told the Daily News on Wednesday that he bought Northern Dynasty stock starting in 2017, thinking the project could be built without putting salmon at risk. Northern Dynasty’s stock sold for $2.23 a share in July. It sold for 33 cents on Wednesday.
Darish said he lost more than $10,000 because of his investment, and that he agreed to be named in the lawsuit after the company “made giant mistakes.”