Glencore plc (LON:GLEN) are facing investigation into alleged bribery and corrupt practice by litigation firms Quinn Emmanuel and Innsworth, following the subpoena by the US Department of Justice.
Quinn and Innsworth are both reputable in the world of business litigation, with the former leading proceedings in the RBS Rights Issue litigation and the VW emissions scandal. The firms will seek to represent their shareholders on issues raised by the UK Serious Fraud Office and the US Department of Justice.
According to its press release, Innsworth’s claim is based on the grounds that its, “[…] shareholders are entitled to seek compensation pursuant to the Financial Services & Markets Act 2000 (“FSMA”) and/or at law on grounds, allegedly, that Glencore has participated in, or had knowledge of, bribery and corruption, and failed to disclose relevant information to the market, or made misrepresentations, arising out of this and/or the risks of certain of its activities and business partners; and failed to disclose (or delayed disclosure) to the market of regulatory investigations.”
Earlier, Quinn Emmanuel’s Co-Partner, Richard East, commented that, “Glencore has a well-known appetite for risk and operates in many of the world’s most endemically corrupt countries, of which the DRC is a notable example. We are of the view that Glencore shareholders may be entitled to bring claims in England under the terms of the Financial Services and Markets Act 2000 in order to seek compensation for losses caused by Glencore’s alleged untrue or misleading statements and/or failures to disclose relevant information to the market.”
These allegations come after Glencore began releasing the records documenting its dealings in ‘high risk’ areas since 2007. Among these areas include the Congo, which is an indictment of a market built upon systemic corruption and bribery. Concerning Glencore, their dealings in the DRC have intimated a degree of cooperation with the state and mining tycoon Dan Gertler, who have a long history of financial malpractice.
Legal proceedings are expected to be held at the English High Court in London. Glencore’s share price stood at 397p before the UK SFO investigation began in May, today they stand at 314.6p, up 1.11 percent since markets opened this morning.
