On April 28, 2022, the SEC filed a complaint against Vale SA, a Brazilian multinational corporation engaged in metals and mining, alleging that the company knew its Brumadinho dam was unsafe before its collapse killed 270 people in January 2019 and that the company made false disclosures to deceive authorities and investors into thinking otherwise.
The complaint states that, beginning in 2016, Vale manipulated multiple dam safety audits, obtained fraudulent stability certificates, and fraudulently disclosed that the dam was safe as part of its periodic filings and environmental, social, and governance (ESG) disclosures. The complaint also states that Vale knew that the Brumadinho dam did not meet internationally-recognized standards for dam safety but nonetheless used sustainability reports and other public filings to fraudulently convince investors otherwise.
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