Country: United Kingdom
Class Period: On behalf of shareholders and former shareholders of the Company who: (i) held shares at market close on any of the following dates: (a) 17 May 2018; (b) 2 July 2018; (c) 24 April 2019; (d) 4 December 2019 and/or (e) 19 June 2020; (ii) acquired shares pursuant to its 4 May 2011 initial public offering
Law Firm: Fox Williams
Litigation Funder: Woodsford Litigation Funding
Glencore – headquartered in Baar, Switzerland – is a global and diversified natural resource company with
135,000 employees and contractors. Specifically, it produces, refines, processes, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It is publicly traded on multiple stock exchanges, including the LSE.
The shareholder class action stems from a May 18, 2018 report in the press that the U.K. Serious Fraud Office (SFO) was investigating Glencore’s likely involvement in bribery related to its association with Israeli billionaire Dan Gertler and its operations in the Democratic Republic of Congo (DRC).
On July 3, 2018, Glencore Limited, a subsidiary of Glencore, announced that it had been served with a subpoena by the U.S. Department of Justice (DOJ) to produce documents and records with respect to compliance with the Foreign Corrupt Practices Act and US anti-money laundering statutes, relating to the group’s business in Nigeria, the DRC and Venezuela from 2007 to present.
On April 25, 2019, the U.S. Commodity Futures Trading Commission announced an investigation in relation to whether Glencore (or its subsidiaries) possibly violated various provisions of the Commodity Exchange Act or regulations, through corrupt practices in connection with commodities. Glencore’s contemporaneous announcement expressed its understanding that the investigations “have a similar scope in terms of subject matter as the current ongoing [DOJ] investigation.”
On December 5, 2019, the SFO confirmed that it had opened an investigation into suspected bribery at the Glencore group of companies. On June 19, 2020, the Swiss government, through Switzerland’s Attorney-General, opened a criminal investigation into Glencore over its failure to prevent alleged corruption in the DRC.
Following each of these developments, several billion pounds were wiped off Glencore’s market capitalization, causing significant loss to shareholders. The proposed group action will be pursued pursuant to sections 90 and 90A Financial Services and Markets Act 2000.
The above five shareholder actions are all noteworthy for the worrisome allegations noted. Interestingly, there are 50+ other cases pending against non-North American public companies – ones with assigned Registration deadline dates that need to be monitored by institutional investors.
ISS Securities Class Action Services will continue to monitor all of the above shareholder actions, and update its clients with key case developments, as events occur.
This post comes comes to us from Institutional Shareholder Services. It is based on the firm’s article, “Five Current Class Actions Outside of North America Investors Should Be Aware Of,” dated August 25, 2022, and available here.