3/18/2019, 7:53 PM (Source: TeleTrader)
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Judge upholds some SEC charges against Rio Tinto

United States District Judge in Manhattan Analisa Torres said on Monday that the Securities and Exchange Commission may pursue some of its charges from 2017 against the Anglo-Australian mining company Rio Tinto plc.

The SEC filed a civil fraud lawsuit in October 2017 against the company, and its then-CEO and CFO, Tom Albanese and Guy Elliott, alleging that the Rio Tinto Coal Mozambique assets have been overvalued by over $3 billion, which improved the balance sheet and raised more than $5 billion from US investors. There was no proof found to support this claim, according to Judge Torres.

Internally, Rio Tinto found that the Mozambique assets were worth negative $680 million. In some statements in relation to the operation's growth prospects, the CEO was "misrepresenting material facts to investors," the judge found.

The company, as well as Albanese and Elliott, are facing civil charges related to the same matter in Australia as well.

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