A U.S. judge is set to approve Rio Tinto’s $138.75 million settlement for a lawsuit accusing the Anglo-Australian mining company of misleading investors. The lawsuit alleged that Rio Tinto hid issues related to its $7 billion underground project at the Oyu Tolgoi copper and gold mine in Mongolia. This approval finalizes a significant legal matter.
The settlement resolves claims that the company failed to disclose problems and cost overruns associated with the mine's development. While the preliminary settlement was reached earlier, the judge's approval provides legal closure to the case. This financial outlay is a material cost for the company.
The finalization of this settlement allows Rio Tinto to move forward without the lingering uncertainty of this litigation. It addresses past governance and disclosure issues, reinforcing the importance of transparency in major project developments. This resolution is a key step in managing legal and reputational risks.
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