Vale investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Vale together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. Vale has a history involving dam failure in connection with its mining activities. On November 5, 2015, Brazilian authorities reported that an iron-ore mine operated by Samarco Mineração SA (“Samarco”) burst, killing dozens of people. The cause of the collapse was the failure of a tailings dam, used to hold water and discarded minerals from the nearby iron-ore mine. Following the 2015 dam failure, Vale agreed to community participation in decisions related to remediation and compensation programs and greater corporate compliance.
The Class Period commences on April 11, 2017, when Vale filed its Annual Report on a Form 20-F with the SEC, announcing its financial and operating results for the fiscal year ended December 31, 2016.
The complaint alleges that, on January 25, 2019, Reuters reported that Vale’s tailings dam had burst at its Feijão iron-ore mine. A “torrent of sludge tore through the mine’s offices, including a cafeteria during lunchtime.” Following this news, shares of Vale fell by $1.20 per share, or over 8%, to close at $13.66 per share on January 25, 2019.
Then, on January 28, 2019, Reuters reported “Brazil’s top prosecutor said . . . she will pursue criminal prosecutions after the collapse of a tailings dam operated by mining giant Vale SA killed at least 58 people and left hundreds missing, and that executives may be punished.” That same day, Reuters reported that “Brazilian securities industry regulator CVM has opened a probe into miner Vale SA’s filings related to a burst tailings dam in the town of Brumadinho.” Following this news, shares of Vale fell by $2.46 per share, or approximately 18%, to close at $11.20 per share on January 28, 2019.
On February 6, 2019, The Wall Street Journal reported that Vale was in possession of a detailed report written months before the disaster indicating that the dam was not certifiable, stating in part “that flaws in monitoring crucial water concentrations and drainage made it difficult for the company to fully assess the dam’s stability.” Then, on February 7, 2019, The Wall Street Journal reported that “[a] safety auditor who inspected a Vale SA mine-tailings dam that collapsed in January killing at least 150 people told police he felt pressured to attest to its stability, despite indications it was unsafe, because he feared losing business with the company.”
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Vale had failed to adequately assess the risk and damage potential of a dam breach at its Feijão iron-ore mine especially in light of its experience in 2015; (ii) Vale’s programs to mitigate health and safety incidents were inadequate; (iii) Vale’s auditor was not independent, as required under Brazilian mining law; (iv) an internal report commissioned by Vale in 2018 to assess the stability of the tailings dam raised concerns over its drainage and monitoring systems; (v) the existence of information that the dam was at risk of “liquefaction,” the same issue that led to the 2015 collapse of the Samarco dam; and (vi) as a result, Vale’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 March 29, 2019 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 firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
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