An investor, who purchased certain 10-year notes from Samarco Mineração S.A., filed a lawsuit over alleged Securities Laws violations by Samarco Mineração S.A. n connection with certain allegedly false and misleading statements.
Investors who purchased Samarco Mineração S.A.’s 10-year notes respectively due 2022, 2023, and 2024 between October 31, 2012 and November 30, 2015 have certain options and for certain investors are short and strict deadlines running. Deadline: January 13, 2017. Samarco Mineração S.A. noteholders should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
Samarco Mineração S.A. is a privately held Brazilian mining company, controlled in equal parts by the Brazilian mining company Vale S.A. and the Australian mining company BHP Billiton Limited . Between 2012 and 2014, Samarco Mineração S.A. conducted at least three debt offerings.
In 2012, Samarco Mineração S.A. offered an aggregate principal amount of $1 billion of 4.125% notes due 2022 (the “2022 Notes”).
In 2013, Samarco Mineração S.A. offered an aggregate principal amount of $700 million of 5.75% notes due 2023 (the “2023 Notes”).
In 2014, Samarco Mineração S.A. offered an aggregate principal amount of $500 million of 5.375% notes due 2024 (the “2024 Notes”).
According to the complaint the plaintiff alleges on behalf of purchasers of Samarco Mineração S.A.’s 10-year notes respectively due 2022, 2023, and 2024 (collectively, the “Notes”) between October 31, 2012 and November 30, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 31, 2012 and November 30, 2015 the defendants made false and/or misleading statements and/or failed to disclose that Samarco Mineração S.A.’s Fundão tailings dam had longstanding systemic and structural defects, that despite representing to investors that Samarco Mineração S.A. had mitigated the risk of a catastrophic accident as much as possible through “a combination of risk management, careful evaluation, experience and knowledge,” Samarco had in fact ignored repeated, reliable warnings regarding the condition of the Fundão tailings dam, and that Samarco Mineração S.A. as a result of the foregoing, defendants’ statements about Samarco Mineração S.A.’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On November 5, 2015, Samarco Mineração S.A.’s Fundão tailings dam burst, causing the downstream Santarem water dam to overflow, flooding 60 million cubic meters of land, decimating the indigenous village of Bento Rodrigues, and contaminating the Rio Doce River and the water supply for 200 towns with arsenic, lead, chromium and various other heavy metals.
Subsequent investigations revealed that Samarco Mineração S.A. had for years disregarded safety concerns raised with respect to the Fundão dam, refusing to implement an emergency management plan, disregarding warnings of design deficiencies and the consequences of expanding the dam, and ignoring recommendations to install pressure sensors and monitor the dam even after cracks appeared in it. Brazilian prosecutors have accused Samarco Mineração S.A.of deliberate misconduct, charged 21 of its executives with qualified homicide in connection with the dam’s failure, and are seeking billions of dollars in compensatory and environmental recovery fees from the Company.
Samarco Mineração S.A. has not resumed its mining operations since the collapse.
The plaintiff claims that the offering memoranda issued in connection with Samarco’s offerings of the Notes and the annual management reports issued by Samarco Mineração S.A. between October 31, 2012 and November 30, 2015 misrepresented material facts concerning the Company’s programs and procedures to mitigate environmental, health and safety concerns associated with its tailings dams. When the truth about the Company’s operations was revealed by the collapse of the Fundão dam and investigation into its causes, the value of Samarco’s Notes significantly declined, harming investors.
Those who purchased Samarco Mineração S.A.’s 10-year notes respectively due 2022, 2023, and 2024 between October 31, 2012 and November 30, 2015 have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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