KIRKLAND LAKE GOLD SUED OVER DETOUR PURCHASE

Kirkland Lake Gold Ltd. was sued on Monday in U.S. federal court for allegedly defrauding shareholders about its business plans before its $4.1-billion purchase of Detour Gold Corp caused its stock to tumble. In a proposed class action filed in U.S. District

Court in Manhattan, shareholder Stephen Brahms accused the Toronto-based miner of making false and misleading statements during 2019 about its risks and two key mining metrics, all-in sustaining costs and reserve grade. Brahms said the statements artificially inflated Kirkland’s share price prior to Nov. 25, 2019, when the Detour purchase was announced and Kirkland shares fell 17.3 per cent in Toronto and 17.2 per cent in New York.