21.1 C
Mining News

Mining giant Glencore is target of a massive lawsuit

Glencore, a major employer in the Sudbury area and a recognized giant on the global mining stage, is in the midst of a legal battle with nearly 200 investors claiming that Glencore made “misleading or untrue statements” with respect to prospectus statements that were reported to cover up corrupt activities.

“A total of 197 funds are seeking damages from Swiss mining giant Glencore over allegations that the company made misleading or untrue statements in its prospectuses to cover up corrupt activities,” said the recent lead story in the Mining Technology business website.

Supported by

“Dozens of the world’s biggest asset managers have accused the trading house Glencore of lying in past share prospectuses to cover up corrupt activities, escalating a far-reaching action in London’s High Court that could have significant ramifications for the natural resources industry,” said the story in the Financial Times website.

“Nearly 200 funds — including some managed by Fidelity, Vanguard, Legal & General, HSBC, Abrdn and Invesco — are seeking damages from Glencore over allegations that the company and its senior leadership made misleading statements that covered up corrupt activities,” said the Financial Times story.

The investors’ lawsuit has been initiated through the high court in London, and is a follow-up to Glencore pleading guilty in 2022 to several charges of bribery and market manipulation. After a lengthy investigation, Glencore agreed to pay $1 billion in fines in the U.S., £280 million in the UK and $40 million in Brazil in that case.

The claimants are alleging that they suffered a loss as a result of the “untrue statements” and omissions made by Glencore as far back at its 2011 prospectus filed with the London Stock Exchange, and later for Glencore’s 2013 prospectus for its merger with Xstrata.

The Financial Times report said the long list of claimants includes sovereign wealth funds such as GIC, Norges Bank, Mubadala, Aabar Holdings, Kuwait Investment Authority, and Oman Investment Authority. Dozens of pension funds have also joined the lawsuit, said the Financial Times and this includes the Ontario Pension Board, Scottish Widows, and BP and Shell pension funds.

The allegations against the company by the investors have not been tested in court.


Source: sudbury

Related posts

Heraeus acquires McCol metals to expand precious metals recycling

David Lazarevic

The Environmental Committee of the University of Belgrade opposes the renewal of the Jadar project

Post Editor

Earth Thrive: Has Rio Tinto initiated arbitration over the Jadar project?

Post Editor
error: Content is protected !!