We are investigating Teck Resources Limited (TECK) (“Teck” or the “Company”) for potential violations of the federal securities laws.
On April 9, 2020, minutes before market close, Canadian news website iPolitics published an article disclosing that Teck “has been accused of putting thousands of its employers in danger of contracting the novel coronavirus at its coal plant in the east Kootenary region of British Columbia.” According to the article, on April 5, 2020, an individual living near the coal mines “wrote a letter to the company’s management that said the working conditions inside the mine have ‘likely enabled the spread of COVID-19 amongst its employees and contractors, their families, and the community at large,’” that such individual “heard from the mine’s employees that the site is low on protective equipment and the vehicles commuting to it are often congested with people, meaning that there is ‘an absolute impossibility to self-distance because of the nature of the work,’” and that “[t]hese allegations have since been substantiated by two workers at the coal mines[.]” On this news, Teck’s share price fell $0.18 per share, or 2.15%, to close at $8.18 per share on April 9, 2020. As the market continued to digest this information, Teck’s share price fell an additional $0.27 per share, or 3.3%, to close at $7.91 per share on April 10, 2020.