March 17, 2021 - An amended consolidated complaint was filed.

October 15, 2020 - A corrected complaint was filed.

October 14, 2020 - An investor in shares of Turquoise Hill Resources Ltd. (NYSE: TRQ) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Turquoise Hill Resources Ltd. in connection with certain allegedly false and misleading statements made between July 17, 2018 and July 31, 2019.

Canada based Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company explores for copper, gold, and silver deposits.

On February 26, 2019, Turquoise Hill Resources Ltd disclosed release that, although “the [Oyu Tolgoi] project cost was expected to remain within the $5.3 billion budget,” a review had determined that “there was an increasingly likely risk of a further delay to sustainable first production beyond Q3‘21.” In the press release, Turquoise Hill Resources Ltd attributed the “likely risk” to productivity delays in completing Shaft 2 and “challenging ground conditions that have had a direct impact on the project’s critical path.”

Then, on July 15, 2019, Turquoise Hill Resources Ltd announced a further delay and that the underground project would cost substantially more than Turquoise Hill had repeatedly stated. Sustainable first production from the underground development of Oyu Tolgoi would now be delayed by another 9 to 21 months until May 2022 to June 2023, and “the development capital spend for the project may increase by $1.2 to $1.9 billion over the $5.3 billion previously disclosed.”

Finally, on July 31, 2019, Turquoise Hill Resources Ltd disclosed that it had taken a $600 million impairment charge and a substantial “deferred income tax recognition adjustment” tied to the Oyu Tolgoi project, and that it had suffered a loss in the second quarter. The next day, Rio Tinto also revealed that it too had taken an impairment charge related to the Oyu Tolgoi project of $800 million. Shares of Turquoise Hill Resources Ltd. (NYSE: TRQ) declined from $2.17 per share in early February 2019 to as low as $0.40 per share in September 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Turquoise Hill Resources Ltd. (NYSE: TRQ) common shares between July 17, 2018 and July 31, 2019, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between July 17, 2018 and July 31, 2019, the the defendants made false and/or misleading statements and/or failed to disclose that the progress of underground development at Oyu Tolgoi was not proceeding as planned, that there were significant undisclosed underground stability issues that called into question the design of the mine and the projected cost and timing of production, that Turquoise Hill’s publicly disclosed estimates of the cost, date of completion, and dates for production from the underground mine were not achievable, that the development capital required for the underground development of Oyu Tolgoi would cost substantially more than a billion dollars over what Turquoise Hill had represented, and that Turquoise Hill would require additional financing and/or equity to complete the project.