Glencore hit with investor lawsuit after bribery conviction

Greater than a dozen international buyers are suing Glencore in London’s Excessive Court docket, in a class-action-style lawsuit prompted by the corporate’s conviction of bribery earlier this 12 months.

Sovereign wealth funds together with Mubadala, the Kuwait Funding Authority, Norges Financial institution and the Worldwide Petroleum Funding Firm have introduced claims towards the mining and commodity buying and selling group, in keeping with court docket paperwork.

Traders Abrdn and HSBC are additionally among the many claimants, as are Phoenix Life, Normal Life, Reassure, and British Airways Pension Trustees.

Whereas the circumstances have been opened, the particulars of declare paperwork setting out the allegations haven’t but been filed.

Nonetheless, individuals conversant in the matter stated the claims associated to investor losses suffered in 2011 and 2013 on the premise of the misconduct recognized within the corruption probes.

Glencore, one of many world’s largest commodities merchants, pleaded responsible to bribery this 12 months following a Critical Fraud Workplace probe, with its penalty to be decided in November.

The bribery conviction is among the highest-profile circumstances to have been gained towards a significant buying and selling home.

Nonetheless, the conviction and positive haven’t held again Glencore’s share worth, which is up 27 per cent because the begin of the 12 months.

The corporate reported file earnings of $18.9bn for the primary half of this 12 months, largely as a result of bumper income in its coal enterprise.

Glencore has put aside $1.5bn to pay the fines for its bribery convictions within the US, UK and Brazil. Comparable investigations into misconduct are nonetheless below means in Switzerland and the Netherlands, whereas the US Division of Justice has stated it could pursue people for his or her position within the bribery circumstances.

The profitable prosecution within the UK follows the same case within the US, the place Glencore agreed to a positive of $1.1bn and pleaded responsible to bribery and market manipulation.

Glencore stated in Might it had taken vital steps to reinforce its ethics and compliance programme.

“Glencore in the present day shouldn’t be the corporate it was when the unacceptable practices behind this misconduct occurred,” chair Kalidas Madhavpeddi stated in Might.

Glencore declined to touch upon the brand new lawsuits.

Defendants listed within the new court docket filings alongside Glencore embrace former chief govt Ivan Glasenberg, former chair Tony Hayward and different prime executives. Glasenberg stepped down from the highest job and Hayward left as chair final 12 months as a part of a transition to a youthful era of leaders. Neither might instantly be reached for remark.