Law Offices of Curtis V. Trinko, LLP announces that on December 13, 2013 it had filed a class action complaint in the United States District Court for the Southern District of New York. The lawsuit is filed on behalf of purchasers of securities of Turquoise Hill Resources Ltd. ("TRQ" or the "Company") between May 14, 2010 and November 8, 2013, inclusive (the "Class Period").
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.
On November 8, 2013, TRQ issued a press release indicating that it would be restating its consolidated financial results for the years ended December 31, 2010, 2011, 2012, and part of 2013, due to errors related to the timing of revenue recognition from sales to certain distributors. 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. And, 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, the Company announced another rights offering, doubling the number of shares outstanding, causing TRQ’s stock price to drop to $3.41 per share.
If you are a member of the class described above, you may move the Court, not later than February 11, 2014 to serve as Lead Plaintiff. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you purchased TRQ securities and wish to discuss this litigation, any questions concerning this Notice or your rights or interests with respect to these matters, please contact us.