UPDATE 1-Barrick Gold reaches $140 mln accord in U.S. investor lawsuit

(New throughout, adds comment from lawyer, background on case)
By Nate Raymond
NEW YORK, May 31 (Reuters) - 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.
"Barrick continues to believe that the claims alleged by the
lead plaintiffs in the litigation are unfounded, and under the
terms of the settlement agreement, the company has not accepted
any charges of wrongdoing or liability," the company said.
The settlement, which requires court approval, comes two
months after a federal judge cleared the way for shareholders
who bought or acquired Barrick stock between May 7, 2009 and
Nov. 1, 2013 to pursue the case as a class action.
Barrick bought the Pascua-Lama project in 1994, and had been
counting on it to generate a large percentage of its overall
gold production.
But cost overruns, environmental issues, labor unrest,
political opposition and falling bullion prices contributed to
Barrick's decision on Oct. 31, 2013 to indefinitely halt the
project, after it had already spent more than $5 billion.
Investors in the lawsuit contended Barrick touted
Pascua-Lama during this period as a "world-class project that
will contribute low-cost ounces at double-digit returns," even
as it became clear the project would fall short of expectations.
The lead plaintiffs in the case were Union Asset Management
Holding AG and LRI Invest S.A.
The case is In re: Barrick Gold Securities Litigation, U.S.
District Court, Southern District of New York, No. 13-03851.