The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (i) the Company violated anti-corruption laws regarding its operations of the Simandou project; (ii) the aforementioned violations would expose the Company to significant scrutiny and large fines; and (iii) as a result, Rio Tinto's public statements were materially false and misleading.
Specifically, on November 9, 2016, Rio Tinto announced that on August 29, 2016, the Company became aware of email correspondence from 2011 relating to contractual payments made to a consultant providing advisory services on the Simandou project. The Company also announced the suspension of Energy & Minerals chief executive, Alan Davies ("Davies"), and the resignation of Legal & Regulatory Affairs group executive, Debra Valentine ("Valentine"). In addition, after-market close on November 14, 2016, Bloomberg News published an article entitled "Rio CEO Says Staff 'Shocked' by Probe That May Take Years." On this news, Rio Tinto's American Depositary Receipt ("ADR") price fell from $39.65 on November 14, 2016 to a closing price of $38.13 on November 15, 2016—a $1.52 or a 3.83% drop.
Then after-market close on November 15, 2016, the Company announced the termination of Davies and Valentine. On this news, Rio Tinto's ADR price fell from $38.13 on November 15, 2016 to a closing price of $37.36 on November 16, 2016—a $0.77 or a 2.02% drop.
Lastly, during pre-market on November 18, 2016, Bloomberg News reported that Guinea's Mines and Geology Minister, Abdoulaye Magassouba, requested that Rio Tinto's Chief Executive Officer, Jean-Sébastian Jacques, provide details of the internal inquiry. In addition, on the same day, Bloomberg News published an article entitled "Rio Tinto Offered Bribe for Mine, Ex-Guinea Minister Says." On this news, Rio Tinto's ADR price fell from $37.56 on November 17, 2016 to a closing price of $36.55 on November 18, 2016—a $1.01 or a 2.69% drop.
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If you invested in Rio Tinto ADRs or options between March 16, 2012 and November 14, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/RIO. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Rio Tinto's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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