Novagold responds to class-action firm, warns investors about JCAP ‘scam’

Explorer and developer Novagold, which is suing short-selling firm J Capital Research (JCAP) for defamation, has responded to US law firm Hagens Berman, which is investigating whether the company has misled investors about the viability of its Donlin gold project, in Alaska.

Hagens Berman said this week it was probing possible securities fraud and that it believed certain investors might have valuable claims.

But Novagold responded with a detailed statement to the class-action law firm, stating that it was a “misconceived effort” to solicit clients and to continue the spread of “malicious and false information”, following the attack by short-seller JCAP on the company and its Donlin project.