Vale To Pay $55.9 Mln To Settle Charges On Misleading Disclosures Prior To Deadly Dam Collapse : SEC

(RTTNews) - Vale S.A. (VALE) agreed to pay $55.9 million to settle charges brought last April stemming from the Brazilian mining company's allegedly false and misleading disclosures about the safety of its dams prior to the January 2019 collapse of the Brumadinho dam that killed 270 people, the U.S. Securities and Exchange Commission said in a statement.

The SEC's complaint alleged that, for years, the dam did not meet internationally-recognized safety standards even as Vale's public sustainability reports assured investors that all of its dams were certified as stable.

The settlement, which remains subject to approval by the U.S. District Court for the Eastern District of New York, requires Vale to pay a civil penalty of $25 million and disgorgement and pre-judgment interest of $30.9 million and would permanently restrain and enjoin Vale from violations of the SEC rules.