Opinion ID: 2189591
Heading Depth: 1
Heading Rank: 3

Heading: Original Complaint

Text: The plaintiff, as a stockholder of Amax Gold, filed the original complaint in this action on October 8, 1996, derivatively in the right of and for the benefit of the Company. The original complaint alleged that in 1995 and 1996, Amax Gold experienced unanticipated cost overruns in connection with a gold development venture known as the Fort Knox Project. At that time, Amax Gold was engaged in the exploration for, and mining of, gold and other precious metals. The original complaint further alleged that the cost overruns in the Fort Knox Project required additional financing. The crux of the plaintiff's derivative claim in the original complaint was that Amax Gold obtained such financing from its then majority stockholder, Cyprus, on terms that were not entirely fair to Amax Gold.