Kessler Topaz Meltzer & Check, LLP Announces Another Securities Fraud Class Action Filed Against Vale S.A. With an Expanded Class Period
RADNOR, Pa., March 01, 2019 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a second securities fraud class action lawsuit has been filed against Vale S.A. (NYSE: VALE) (“Vale”) on behalf of purchasers of Vale securities between April 11, 2017 and January 28, 2019, inclusive (the “Class Period”), in the United States District Court for the Southern District of New York.
Important Deadline Reminder: Investors who purchased Vale securities during the Class Period may, no later than March 29, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit www.ktmc.com/vale-securities-class-action.
The first complaint against Vale was filed on January 28, 2019 in the United States District Court for the Eastern District of New York on behalf of purchasers of Vale securities between April 13, 2018 and January 28, 2019.
On February 20, 2019, a second complaint (the “Second Complaint”) was filed in another court, the United States District Court for the Southern District of New York, and expanded the class period to include purchasers of Vale shares between April 11, 2017 and January 28, 2019.
According to the Second 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 Second Complaint alleges that, on January 25, 2019, Reuters reported that Vale’s tailings dam had burst at its Feijão iron-ore mine in Brumadinho, Brazil. Several people were killed, including Vale’s workers. Hundreds of others were reported as missing, and mining debris and mud flooded the city. Following this news, shares of Vale fell $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 Second 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 wish to discuss this securities fraud class action lawsuit or have any questions concerning this notice or your rights or interests with respect to this litigation, please contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299–7706 or (610) 667–7706, or via e-mail at firstname.lastname@example.org.
Vale investors may, no later than March 29, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaints in these actions were not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP James Maro, Jr., Esq. Adrienne Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (888) 299-7706 (610) 667-7706 email@example.com