Robbins Arroyo LLP: Rio Tinto plc (RIO) Misled Shareholders According to a Recently Filed Class Action
17 December 2016 - 7:06AM
Business Wire
Shareholder rights law firm 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.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/rio-tinto-plc
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, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161216005722/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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