US judge narrows investor lawsuit against Rio Tinto over Mongolian mine

In a 40-page decision, the Port rejected the claim against Rio Tinto because Turquoise Hill Resources owned 66% of the mine, with the rest held by Mongolia, and said the draw schedule was on track.

The port said Rio Tinto was not responsible for the statement, despite a subsidiary of the Anglo-Australian mining giant being the majority owner of Turquoise Hill.

The judge also rejected allegations that Jacques intended to defraud shareholders in statements he made about the mine from October 2018 because those statements showed he believed the timeline Rio Tinto announced that month was accurate.

Liman said allegations against Jacques based on earlier statements survive because shareholders adequately allege that they knew delays existed when the class period began.

The lawsuit, led by funds advised by Pentwater Capital Management, seeks damages on behalf of shareholders of Montreal-based Turquoise between July 17, 2018 and July 31, 2019.

Pentwater’s attorneys did not immediately respond to requests for comment. Lawyers for Rio Tinto and Jacques did not immediately respond to similar requests.

Jacques led Rio Tinto for four years before resigning in March 2021, following pressure from shareholders seeking accountability for the company’s destruction of two culturally significant Aboriginal rock shelters in May 2020.

Rio Tinto did not violate any laws while operating in the Juukan Gorge regions of Western Australia. The sites showed evidence of human habitation dating back 46,000 years.

The case is In re Turquoise Hill Resources Ltd Securities Litigation, U.S. District Court, Southern District of New York, No. It is 20-08585.

(Reporting by Jonathan Stempel and Clara Denina; Editing by Jamie Freed)

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