NEW YORK, NY / ACCESSWIRE / November 18, 2017 / Pomerantz LLP is investigating claims on behalf of investors of Rio Tinto plc ("Rio Tinto" or the "Company") (NYSE: RIO). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Rio Tinto and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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In August 2011, Rio Tinto acquired certain Riversdale Mining Limited coal assets in Mozambique for approximately $3.7 billion. In or around December 2012, the Chairman of the Board of Rio Tinto ordered an investigation into the true value of these coal assets. In January 15, 2013, the Company's Board determined that the assets were severely impaired and should be written down to $611 million. On February 15, 2013, Rio Tinto disclosed the initial impact of the impairment to investors in a press release announcing the Company's financial and operating results for 2012. On this disclosure, Rio Tinto's American Depositary Receipt price fell sharply over the following trading sessions, damaging investors. After recording hundreds of millions of dollars in additional impairment charges, Rio Tinto ultimately sold the assets at issue for $50 million (less than two percent of the original $3.7 billion acquisition price).
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SOURCE: Pomerantz LLP