Pomerantz LLP announces that a class action lawsuit has been filed against Glencore plc (“Glencore” or the “Company”) (OTC MKT:GLNCY) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under index 18-cv-06286, is on behalf of a class consisting of investors who purchased or otherwise acquired publicly traded Glencore securities from September 30, 2016, and July 2, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
Glencore engages in the production, refinement, processing, storage, transport and marketing of metals and minerals, energy products, and agricultural products worldwide.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Glencore’s conduct would foreseeably subject it to heightened scrutiny by U.S. and foreign government bodies with respect to the Company’s compliance with money laundering and bribery laws and the U.S. Foreign Corrupt Practices Act (“FCPA”); and (ii) as a result, Defendants’ statements about Glencore’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
On May 18, 2018, Bloomberg reported that the U.K.’s Serious Fraud Office was preparing to open a formal bribery investigation into Glencore.
On this news, shares of GLNCY fell $0.55 per share, or over 5%, to close at $10.13 per share on May 18, 2018, while shares of GLCNF fell $0.32 per share, or nearly 6%, to close at $5.06 per share on May 18, 2018.
Then, on July 3, 2018, pre-market, Glencore disclosed that the U.S. Department of Justice had issued its subsidiary Glencore Ltd a subpoena to produce documents and other records in connection with its compliance with U.S. money laundering statutes and the FCPA.
On this news, shares of GLNCY fell $0.86 per share, or over 9%, to close at $8.31 per share on July 3, 2018, while shares of GLCNF fell $0.41 per share, or nearly 9%, to close at $4.20 per share on July 3, 2018.