One of the world’s largest gold companies with shares traded on both the TSX and NYSE announced that it had suspended the development of one of its mines based on its expected outlook for metal prices and uncertainty regarding regulatory (including environmental) requirements. A class action was brought on behalf of shareholders, which alleged the company had made misrepresentations regarding the operation of the mine and its compliance with environmental regulations. NERA provided an expert report for a preliminary hearing to decide whether to allow the class action to be pursued. NERA Senior Managing Director Brad Heys described the economic analyses that are typically required to establish the materiality of the alleged misrepresentations and any causal connection between alleged corrective disclosures and losses incurred by class members, noting that the plaintiff had provided no such analysis (expert or otherwise). The case was dismissed at the court of first instance (an appeal was subsequently allowed in part).