Rio Tinto plc
Robbins Arroyo LLP: Rio Tinto plc (RIO) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Rio Tinto plc (NYSE: RIO) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Rio securities between March 16, 2012 and November 14, 2016, for alleged violations of the Securities Exchange Act of 1934 by Rio’s officers and directors. Rio, a mining and metals company, finds, mines, and processes mineral resources. Rio has held a significant stake in the Simandou iron mine located in southern Guinea.
Rio Accused of Violating Anti-Corruption Laws
According to the complaint, Rio submitted a series of filings with the U.S. Securities and Exchange Commission in which it detailed the importance of the Simandou project to the company. In its filings, Rio also elaborated on the company’s compliance and business integrity, stating, “We operate within all relevant laws and regulations and are dedicated to open and transparent dealings with our stakeholders. Acting with integrity and being accountable for our actions are the foundations on which we do business.” The complaint alleges, however, that Rio officials failed to disclose that the company violated anti-corruption laws in connection with its operations on the Simandou project, which in turn would expose the company to significant scrutiny and large fines.
On November 9, 2016, Rio revealed that in August 2016, the company became aware of email correspondence from 2011 relating to contractual payments totaling $10.5 million made to a consultant for the Simandou project, and that the company had launched an investigation. Then, on November 14, 2016, Bloomberg News published an article reporting that Rio’s investigation may take several years to resolve. On November 18, 2016, Bloomberg News reported that, according to Guinea’s former mining minister, a Rio executive asked how big a bribe it would take to beat out a competitor for the Simandou project. Since news of Rio’s wrongdoing became public, its American Depositary Shares declined by over 8% to close at $36.55 per share on November 18, 2016.
Rio Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.