SEC says Rio Tinto, two former execs must face fraud charges

Jan. 24, 2018 7:50 AM ETRio Tinto Group (RIO)RIOBy: Carl Surran, SA News Editor3 Comments
  • The SEC rejects arguments by Rio Tinto (NYSE:RIO) and two former top executives that its civil lawsuit claiming they concealed the plunging value of the company's coal assets should be dismissed.
  • The agency maintains its earlier complaint adequately alleged that fraud occurred, and that Rio, former CEO Thomas Albanese and former CFO Guy Elliott intended to deceive investors.
  • The SEC also rejects Rio’s argument that any alleged misstatements and omissions might be immaterial because the writedown was for only 3% of company assets; it says Rio's net earnings for H1 2012 would have been cut by more than 50% if the company had properly written down the assets.

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