(Bloomberg) -- U.S. securities regulators sued Vale SA, one of the world’s largest iron ore miners, for allegedly making false claims about safety before the January 2019 collapse of its Brumadinho dam that killed 270 people.
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Rio de Janeiro-based Vale misled local governments, communities, and investors through its environmental, social, and governance disclosures, starting in 2016, according to the the U.S. Securities and Exchange Commission. Vale, which trades on the New York Stock Exchange and in Sao Paulo, falsely told investors that the company adhered to the “strictest international practices” despite knowing that the Brumadinho dam didn’t meet international standards, the regulator said in a statement.
“While allegedly concealing the environmental and economic risks posed by its dam, Vale misled investors and raised more than $1 billion in our debt markets while its securities actively traded on the NYSE,” said Melissa Hodgman, associate director of the SEC’s enforcement division.
The SEC’s complaint, filed in federal court in Brooklyn, is seeking civil penalties, ill-gotten gains plus interest. According to the regulator, in addition to “immeasurable environmental and social harm” caused by the collapse, the incident helped shrink Vale’s market capitalization by $4 billion.
“We strongly disagree and will contest SEC allegations,” Vale Chief Financial Officer Gustavo Pimenta said on a conference call with investors. The firm’s Brazil-traded...
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