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SEC Sues Vale for False Claims Tied to Brumadinho Dam Collapse

  • Regulator says that mining firm misled investors over safety
  • 2019 collapse of its Brumadinho dam killed 270 people
Residents survey damage after a Vale dam burst in Brumadinho, Minas Gerais state, Brazil, in Jan. 2019. 

Residents survey damage after a Vale dam burst in Brumadinho, Minas Gerais state, Brazil, in Jan. 2019. 

Photographer: Victor Moriyama/Bloomberg
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U.S. securities regulators sued Vale SA, one of the world’s largest iron ore miners, for allegedly making false claims about safety before the January 2019 collapse of its Brumadinho dam that killed 270 people. 

Rio de Janeiro-based Vale misled local governments, communities, and investors through its environmental, social, and governance disclosures, starting in 2016, according to the the U.S. Securities and Exchange Commission. Vale, which trades on the New York Stock Exchange and in Sao Paulo, falsely told investors that the company adhered to the “strictest international practices” despite knowing that the Brumadinho dam didn’t meet international standards, the regulator said in a statement.