Quinn Emanuel forms shareholder group to sue Glencore after bribery and corruption allegations
US firm leads claim backed by litigation funder as mining giant turns to Linklaters
July 12, 2018 at 06:21 AM
2 minute read
Quinn Emanuel Urquhart & Sullivan is investigating potential action against trading and mining company Glencore, after it was revealed that it is involved in bribery and corruption probes in the UK and US.
Last week (3 July), Glencore announced that its US subsidiary, Glencore Group, had received a subpoena from the US Department of Justice to produce documents relating to its businesses in Nigeria, the Democratic Republic of Congo (DRC) and Venezuela from 2007 to the present day.
The subpoena follows reports in May that the Serious Fraud Office (SFO) was considering seeking approval to open an investigation into the FTSE 100 company's dealings in the DRC.
The US firm has formed a shareholder group, which intends to lodge a claim based on a sharp fall in the company's share price in the wake of the allegations, resulting in a fall of almost £7bn in Glencore's market capitalisation
The claim is being backed by Jersey-based litigation funder Innsworth, which, according to its website, finances commercial litigation and arbitration claims in excess of $100m (£75m).
Quinn Emanuel London co-managing partner Richard East and Switzerland managing partner Thomas Werlen are leading on the potential action, which the firm expects to file in the Financial List of the High Court.
East said: "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."
Linklaters is understood to be acting for Glencore. The magic circle firm is a longstanding legal adviser to the commodities giant, and has taken roles on numerous deals including 2016′s $2.5bn sale of its agribusiness to Canada Pension Plan Investment Board, as well as its merger with miner Xstrata and its $5bn disposal of the Las Bambas copper mine in 2013.
Photo credit: Golda Fuentes
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