Delaware Citgo $7.38B Suit: Gold Reserve Accuses Rusoro of Insider Bid Betrayal

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Executives Enriched Amid Alleged Misconduct

Gold Reserve also alleges Rusoro executives issued 30 million fully vested stock options in June 2025 while holding confidential bid information, causing the company’s stock price to surge nearly 30%.

Relief Sought by Gold Reserve

Gold Reserve seeks a preliminary injunction barring Rusoro from participating in Elliott’s bid, arguing the competing proposal “would not exist but for Rusoro’s misconduct.” The suit also pursues damages for contract breaches, fraudulent inducement, tortious interference, and trade-secret misappropriation.

Legal Representation

  • Gold Reserve Ltd.: Kevin J. Mangan, Matthew Ward, Stephanie Riley, Zachary Murphy, Womble Bond Dickinson LLP

  • Rusoro Mining Ltd.: Robert C. Martin, Michael Carbonara, Caleb G. Johnson, DLA Piper LLP

Representatives for the parties did not immediately comment Thursday.

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The lawsuit highlights a high-stakes, billion-dollar tug-of-war over Citgo, with allegations of strategic betrayal and corporate espionage at the heart of one of the most closely watched international asset sales in recent years.