TORONTO (miningweekly.com) – A US District Court judge on Tuesday dismissed a consolidated putative securities class action lawsuit that was filed in the Southern District of New York against Rio Tinto subsidiary Turquoise Hill Resources and certain of its officers and directors, in December last year.
Turquoise Hill on Wednesday said that Judge Lorna Schofield dismissed the class action suit that sought to recover damages that it claimed were attributable to alleged misstatements about the company's financial performance arising out of the company's restatement resulting from the revisions to the revenue recognition protocol by Mongolia-focused coal-mining subsidiary SouthGobi Resources.
In her opinion, Judge Schofield found that the plaintiff's allegations "do not support an inference that this error was intentional" or that the company or the individual defendants "furthered the error, condoned it or were even aware of it until steps to review and ultimately correct it began."
SouthGobi Resources on Friday said it would restate its financial results from 2011 to 2013, because of a change in the point of revenue recognition at its Ovoot Tolgoi mine.
The restated consolidated financial statements reflected a change in the point of revenue recognition from delivering coal to the customer stockpiles within the mine’s stockyard, to the moment it is loaded onto the customer's trucks when it is collected.