According to the law firm press release, Turquoise Hill is an international mineral exploration and development company.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding Turquoise Hill’s financial performance and business prospects and had overstated the Company’s reported revenue, specifically for its SouthGobi Resources Ltd. (“SouthGobi”) subsidiary, which produces coal at the Ovoot Tolgoi mine in Mongolia. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period, reaching a high of $28.91 per share on February 7, 2011.
Then on November 8, 2013, Turquoise Hill issued a press release disclosing that the Company would be restating its consolidated financial results for the years ended December 31, 2010, 2011, 2012 and the affected quarters, including 2013, due to errors related to the timing of revenue recognition from sales to certain distributors as a result of the SouthGobi subsidiary’s decision to change the way it recognizes revenue. The Company further disclosed that some sales were booked after delivery to the customers’ stockpiles at the Ovoot Tolgoi mine instead of upon customer collection. In addition, the Company stated that the financial statements should no longer be relied upon. On this news, the Company’s stock price dropped from $4.87 per share on November 7, 2013 to close at $4.09 per share by November 14, 2013. Subsequently, on December 4, 2013, after the Company announced a rights offering, doubling the number of shares outstanding, Turquoise Hill’s stock price dropped to $3.41 per share.
On April 4, 2014, the Court issued an Order consolidating cases.
On April 8, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed a consolidated and amended complaint on May 23.
On December 16, 2014, the Court issued an Order granting Defendants' motion to dismiss in its entirety.