Australian regulators expand lawsuits against Rio Tinto

The Australian corporate regulator has expanded its legal action against Rio Tinto Ltd and two former executives over assets in Mozambique.

The Australian Securities and Investment Commission launched legal action against Rio Tinto, former CEO Thomas Albanese and former CFO Guy Elliott in March, claiming they defrauded coal investors in Mozambique purchased for $ 4 billion in 2011. ... Rio Tinto is believed to have misrepresented the reserves and resources of Mozambique's coal assets in its 2011 annual report signed by the two executives.

On Tuesday, the regulator said it was taking further action, arguing that Rio Tinto did not acknowledge impairment of Mozambique's coal assets in its 2012 interim financial statements, did not disclose material damages and other related violations of the Corporations Act.

The Australian share follows a US lawsuit that began in October, when the Securities and Exchange Commission alleged that Rio Tinto was misleading investors about the value of assets acquired in a takeover of Riversdale Mining Ltd.