On July 9, 2018, investors sued Glencore Plc (“Glencore,” “GLCNF,” or the “Company”) in United States District Court, District of New Jersey. Plaintiffs in the GLCNF Lawsuit allege that they acquired Glencore stock at artificially inflated prices between September 30, 2016 and July 2, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more about the Glencore Class Action Lawsuit, please reach out to us today!
Summary of the Allegations
Glencore (OTC: GLCNF, GLNCY) produces, refines, processes, stores, transports and markets metals, minerals, energy products and agricultural products worldwide.
Founded as a trading company in the 1970s, Glencore says it now has approximately 150 mining and metallurgical sites, oil production assets and agricultural facilities – including mines in the Democratic Republic of Congo (DRC). The Company also says it employs more than 140,000 people in more than 50 countries.
Summary of Facts
Glencore and two of its senior executives (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding critical information about the Company’s business practices and prospects during the Class Period.
Specifically, they are accused of omitting truthful information about certain conduct and the investigation thereof from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Glencore stock to trade at artificially inflated prices during the time in question.
The truth came out in a series of events occurring on May 18, 2018 and July 3, 2018. On May 8, Bloomberg reported that, “the U.K.’s Serious Fraud Office was preparing to open a formal bribery investigation into Glencore.”
Then, before the market opened on July 3, Glencore “disclosed that the U.S. Department of Justice issued its subsidiary a subpoena to produce documents and other records in connection with its compliance with U.S. money laundering statutes and the Foreign Corrupt Practices Act.”
A closer look…
As alleged in the July 9 complaint, the Company repeatedly made false and misleading public statements during the Class Period.
For instance, an article published by Bloomberg at the beginning of the Class Period quoted the Company as saying that it “takes ethics and compliance very seriously…”
Then on an annual report filed with the SEC on March 2, 2017, the Company said in pertinent part: “We are committed to complying with or exceeding the laws and external requirements applicable to our operations and products.”
Finally, in another annual report filed with the SEC on March 2, 2018, the Company said in pertinent part: “We seek to maintain a culture of ethical behavior and compliance throughout the Group, rather than simply performing the minimum required by laws and regulations. We will not knowingly assist any third party in breaching the law, or participate in any criminal, fraudulent or corrupt practice in any country.”
On the same form, Glencore referred to its bribery and corruption policy, saying in pertinent part: “Glencore’s Global Anti-Corruption Policy… contains our clear position on bribery and corruption: the offering, paying, authorizing, soliciting or accepting of bribes is unacceptable. We conduct analysis for corruption risks within our businesses and seek to address these risks through policies and procedures, training and awareness raising, monitoring and controls.”
Impact of the Alleged Fraud on Glencore’s Stock Price and Market Capitalization
|Closing stock price prior to disclosures:
|Closing stock price the trading day after disclosures:
|One day stock price decrease (percentage) as a result of disclosures:
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is September 7, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Glencore common stock using court-approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
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Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.
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