SAN FRANCISCO, Oct. 25, 2017 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts purchasers of Rio Tinto PLC (NYSE:RIO) U.S. traded securities to the firm’s filing of a securities class action against the Rio Tinto and certain former senior executives related to the SEC’s allegations that they publicly overstated the value of Rio Tinto Coal Mozambique (“RTCM”) by billions of dollars. The lawsuit is pending in the U.S. District Court for the Southern District of New York. Investors may have damages even if they sold their shares years ago.
The Lead Plaintiff deadline is December 22, 2017. If you purchased or otherwise acquired securities in the United States, including bonds (1.625% due 2017, 2.875% due 2022, 4.125% due 2042), of Rio Tinto between October 23, 2012 and February 15, 2013 contact Hagens Berman Sobol Shapiro LLP to discuss your options by visiting:
https://www.hbsslaw.com/cases/RioTinto
You may also contact Reed Kathrein, who is leading the firm’s prosecution of this action, by calling 510-725-3000 or emailing
The complaint and the SEC charge on October 17, 2017 that Rio Tinto, its former Chief Executive Officer (Thomas Albanese), and its former Chief Financial Officer (Guy Robert Elliott), were fully aware the RTCM’s business was essentially worthless but they continued to fraudulently tout its value in the billions of dollars.
According to the complaint and the SEC, as early as August 2012 an executive in charge of Rio Tinto’s Technology & Innovation (“TI”) division informed CFO Elliott that RTCM was worth between negative $4.9 billion to $300 million but Elliott did not inform Rio Tinto’s board or its investors during meetings with them in October and November 2012.
The complaint and the SEC allege that the TI executive brought RTCM’s enormous overvaluation directly to the attention of Rio Tinto’s board of directors and, on January 15, 2013, the board determined that an 80 percent write-down of RTCM’s value to $611 million should be recorded. The Company reported this write-down in its financial statements filed with the SEC on February 15, 2013.
Both CEO Ablanese and Elliott departed from their positions shortly after the board’s decision. Rio Tinto ultimately sold RTCM for a mere $50 million after recording an additional $470 million RTCM write-down.
“The SEC complaint revealed facts long hidden from investors indicating that the investors paid an inflated price for Rio Tinto’s U.S. traded ADRs and other securities. By filing this complaint, at least a portion of the investors, who purchased during the Class Period, may still be able to recover those damages,” said Hagens Berman partner Reed Kathrein. “We continue to investigate this and other matters hidden from investors.”
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Contact:
Reed Kathrein, 510-725-3000