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According to the complaint, Rio Tinto is a mining and metals company that finds, mines, and processes mineral resources. Rio Tinto has operations in Australia, North America, Asia, Europe, Africa, and South America. At all relevant times, Rio Tinto has held a significant stake in the Simandou iron mine, located in southern Guinea. Rio Tinto operates as a subsidiary of Rio Tinto Group.
The Class Period commences on March 16, 2012, when Rio Tinto filed its Annual Report on Form 20-F with the SEC, announcing its financial and operating results for the year ended December 31, 2011.
According to the complaint, on November 14, 2016, post-market, Bloomberg News published an article entitled “Rio CEO Says Staff ‘Shocked’ by Probe That May Take Years.” The article reported, in relevant part that, “Rio Tinto Group Chief Executive Officer Jean Sebastien Jacques said an investigation into the lawfulness of a payment made to an external consultant relating to a giant iron ore project in Guinea has ‘shell-shocked’ the company and may take several years to resolve.” Following this news, Rio Tinto’s ADR price fell $1.52, or 3.83%, to close at $38.13 on November 15, 2016, the following trading day.
Then, on November 18, 2016, Bloomberg News reported that Guinea’s Mines and Geology Minister, Abdoulaye Magassouba, wrote to Jean-Sébastian Jacques, asking him to provide details of the internal inquiry. Bloomberg News also published an article entitled “Rio Tinto Offered Bribe for Mine, Ex-Guinea Minister Says.” Following this news, Rio Tinto’s ADR price fell $1.01, or 2.69%, to close at $36.55 on November 18, 2016.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Rio Tinto violated anti-corruption laws in connection with its operations with respect to the Simandou project; (ii) the foregoing violations would expose the company to significant scrutiny and large fines; and (iii) as a result of the foregoing, Rio Tinto’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than February 10, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com