by Nate Raymond
Barrick Gold Corp (ABX.TO) has agreed to pay $140 million to resolve a U.S. lawsuit accusing the gold producer of concealing problems at a South American mine and of fraudulently inflating the company’s market value, according to court papers.
The settlement, disclosed in papers filed on Tuesday in Manhattan federal court, would resolve a class action accusing Barrick of deceiving investors about environmental problems afflicting its Pascua-Lama project on the border of Argentina and Chile.
“I am pleased we were able to reach this resolution for investors,” James Hughes, a lawyer for the plaintiffs at the law firm Motley Rice, said in a statement.
Barrick in a statement confirmed the $140 million accord and said the value of the settlement is insured.