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BREAKING NEWS: Thursday, January 2, 2013
Latest complaint without merit, says company
January 2 (The Canadian Press) A class-action lawsuit that accuses Turquoise Hill Resources of misleading investors over a 3½-year period has been filed in a U.S. district court in New York City.
The law firm Levi and Korsinsky filed the case on behalf of those who bought shares in the Vancouver-based company between May 14, 2010 and Nov. 8, 2013.
The case alleges that the mining company made false and or misleading statements regarding its financial performance and business prospects and overstated its revenue.
The allegations, filed in the U.S. District Court for the Southern District of New York, have not been proven in court.
Turquoise Hill Resources was known as Ivanhoe Mines until 2012. The company was founded by billionaire investor Robert Friedland.
Rio Tinto Group gained control of the company and parted ways with Friedland in 2012 and the CEO is now Kay Priestly, an executive who came from Rio Tinto.
Friedland has since started another mining company that was initially called Ivanplats Limited, but that is now called Ivanhoe Mines Ltd.
Turquoise Hill said in November it would restate its results for the years ended Dec. 31, 2010, 2011 and 2012, as well as the affected quarterly financial results following a decision by its majority owned subsidiary SouthGobi Resources to restate its results.
The SouthGobi restatement was due to a change in determination of when revenue should be recognized according to international accounting standards.
Turquoise Hill said Tuesday it was aware of the complaint and believed it was without merit.
"We will vigorously defend against the complaint," a company spokesman said in an email.
The Levi and Korsinsky lawsuit is the second case filed against Turquoise Hill in recent weeks.
Another case was filed earlier in December by law firm Robbins, Geller, Rudman and Dowd that also accused Turquoise Hill of "materially false and misleading statements" regarding its financial performance.
Turquoise Hill is developing the Oyu Tolgoi copper mining complex in Mongolia, including an open-pit mine that began production this year and an underground portion under development.
In November, The Sun reported that the company had suspended work on the mine after the Mongolian government said financing for the project would require parliamentary approval.
The company lost $94 million or nine cents per share in its third quarter compared with a profit of $112.2 million or 13 cents per share for the same period a year ago.
Levi & Korsinsky press release:
TURQUOISE HILL RESOURCES, LTD. SHAREHOLDER ALERT: Levi & Korsinsky, LLP Reminds Investors of Class Action Against Turquoise Hill Resources, Ltd. and Its Board of Directors and a Lead Plaintiff Deadline of February 11, 2014 -- TRQ
NEW YORK, NY--(Marketwired - Dec 31, 2013) - Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of investors who purchased Turquoise Hill Resources, Ltd. ("Turquoise Hill" or the "Company") (NYSE: TRQ) common stock between May 14, 2010 and November 8, 2013.
For more information, click here: http://zlk.9nl.com/turquoise-hill-resources-trq/.
The complaint alleges that the Company made false and/or misleading statements regarding Turquoise Hill's financial performance and business prospects, and that the Company had overstated its reported revenue, specifically for its subsidiary SouthGobi Resources Ltd. ("SouthGobi").
On November 8, 2013, Turquoise Hill announced it would restate its consolidated financial results for the years ended December 31, 2010, 2011, and 2012, as well as the affected quarterly financial results. According to the Company, these statements could no longer be relied upon due to errors related to the timing of revenue recognition from sales to certain distributors as a result of SouthGobi's decision to alter its methods of recognizing revenue.
If you suffered a loss in Turquoise Hill you have until February 11, 2014 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. To obtain additional information, contact Joseph E. Levi, Esq. either via email at email@example.com or by telephone at (212) 363-7500, toll-free: (877) 363-5972, or visit http://zlk.9nl.com/turquoise-hill-resources-trq/.
Levi & Korsinsky is a national firm with offices in New York, New Jersey, Connecticut, and Washington D.C. The firm has extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. Attorney advertising. Prior results do not guarantee similar outcomes.
The first lawsuit filed in December 13:
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS ACTION SUIT AGAINST TURQUOISE HILL RESOURCES LTD.
December 13 2013 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/turquoisehill/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Turquoise Hill Resources, Ltd. (“Turquoise Hill”) (NYSE:TRQ) common stock during the period between May 14, 2010 and November 8, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs’ counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/turquoisehill/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Turquoise Hill and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Turquoise Hill is an international mineral exploration and development company.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding Turquoise Hill’s financial performance and business prospects and had overstated the Company’s reported revenue, specifically for its SouthGobi Resources Ltd. (“SouthGobi”) subsidiary, which produces coal at the Ovoot Tolgoi mine in Mongolia. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period, reaching a high of $28.91 per share on February 7, 2011.
Then on November 8, 2013, Turquoise Hill issued a press release disclosing that the Company would be restating its consolidated financial results for the years ended December 31, 2010, 2011, 2012 and the affected quarters, including 2013, due to errors related to the timing of revenue recognition from sales to certain distributors as a result of the SouthGobi subsidiary’s decision to change the way it recognizes revenue. The Company further disclosed that some sales were booked after delivery to the customers’ stockpiles at the Ovoot Tolgoi mine instead of upon customer collection. In addition, the Company stated that the financial statements should no longer be relied upon. On this news, the Company’s stock price dropped from $4.87 per share on November 7, 2013 to close at $4.09 per share by November 14, 2013. Subsequently, on December 4, 2013, after the Company announced a rights offering, doubling the number of shares outstanding, Turquoise Hill’s stock price dropped to $3.41 per share.
Plaintiffs seek to recover damages on behalf of all purchasers of Turquoise Hill common stock during the Class Period (the “Class”). The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in ten offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
Happy New Year!
Munkhdul Badral Bontoi
Founder & CEO
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