Hagens Berman Alerts Rio Tinto PLC Investors to Limited Time to File Claims Related to SEC Allegations that in 2012 RIO Defrauded Investors

SAN FRANCISCO, Oct. 18, 2017 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP alerts investors in Rio Tinto PLC (NYSE: RIO) to the firm's investigation into potential securities fraud related to the SEC's allegations that the Company and certain former senior executives overstated the value of Rio Tinto Coal Mozambique ("RTCM") by billions of dollars.  Because the fraud occurred almost five years ago, investors have limited time to file claims for their overpayment for shares, even if they did not actually experience a monetary loss.  If you purchased or otherwise acquired securities, including bonds, of RIO between October 2012 and February 15, 2013 contact Hagens Berman Sobol Shapiro LLP.  For more information visit:

https://www.hbsslaw.com/cases/RioTinto

or contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing

[email protected].

The SEC charged on October 17, 2017 that Rio Tinto, its former Chief Executive Officer (Thomas Albanese), and its former Chief Financial Officer (Guy Robert Elliott), were fully aware the RTCM business was essentially worthless but they nevertheless continued to fraudulently tout its value by billions of dollars.

According to the SEC, as early as August 2012 an executive in charge of Rio Tinto's Technology & Innovation ("TI") division informed CFO Elliott that RTCM was worth between negative $4.9 billion to $300 million but Elliott did not inform Rio Tinto's board or its investors during meetings with them in October and November 2012.

The SEC alleges that the TI executive brought RTCM's enormous overvaluation directly to the attention of Rio Tinto's board of directors and, on January 15, 2013, the board determined that an 80 percent writedown of RTCM's value to $611 million should be recorded.  The Company reported this write down in its financial statements filed with the SEC on February 15, 2013.

Both CEO Albanese and Elliott departed from their positions shortly after the board's decision.  Rio Tinto ultimately sold RTCM for a mere $50 million after recording an additional $470 million RTCM writedown.

"We're focused on the matters identified by the SEC, Defendants' apparent knowledge of fraudulent accounting for RTCM, and investors', including bond investors', damages," said Hagens Berman partner Reed Kathrein.  "We hope it's not too late to salvage some of the investor claims."

Whistleblowers:  Persons with non-public information regarding Rio Tinto should consider their options to help in the investigation or take advantage of the SEC Whistleblower program.  Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.  For more information, call Reed Kathrein at 510-725-3000 or email [email protected].

About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with 11 offices across the country.  The firm represents investors, whistleblowers, workers and consumers in complex litigation.   More about the firm and its successes can be found at www.hbsslaw.com.  For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:
Reed Kathrein, 510-725-3000

SOURCE Hagens Berman Sobol Shapiro LLP

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