SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/turquoisehill/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Turquoise Hill Resources, Ltd. (“Turquoise Hill”) (NYSE:TRQ) common stock during the period between May 14, 2010 and November 8, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs’ counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/turquoisehill/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Turquoise Hill and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Turquoise Hill is an international mineral exploration and development company.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding Turquoise Hill’s financial performance and business prospects and had overstated the Company’s reported revenue, specifically for its SouthGobi Resources Ltd. (“SouthGobi”) subsidiary, which produces coal at the Ovoot Tolgoi mine in Mongolia. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period, reaching a high of $28.91 per share on February 7, 2011.
Then on November 8, 2013, Turquoise Hill issued a press release disclosing that the Company would be restating its consolidated financial results for the years ended December 31, 2010, 2011, 2012 and the affected quarters, including 2013, due to errors related to the timing of revenue recognition from sales to certain distributors as a result of the SouthGobi subsidiary’s decision to change the way it recognizes revenue. The Company further disclosed that some sales were booked after delivery to the customers’ stockpiles at the Ovoot Tolgoi mine instead of upon customer collection. In addition, the Company stated that the financial statements should no longer be relied upon. On this news, the Company’s stock price dropped from $4.87 per share on November 7, 2013 to close at $4.09 per share by November 14, 2013. Subsequently, on December 4, 2013, after the Company announced a rights offering, doubling the number of shares outstanding, Turquoise Hill’s stock price dropped to $3.41 per share.
Plaintiffs seek to recover damages on behalf of all purchasers of Turquoise Hill common stock during the Class Period (the “Class”). The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in ten offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
