Institutional investors in Glencore PLC plan to sue the Swiss commodities giant for claims "expected to run into the billions" over share price drops caused by bribery probes it is facing, Bloomberg News reported Dec. 5, citing a statement by New York-based law firm Boies Schiller & Flexner LLP.
The U.K. Serious Fraud Office recently confirmed that it is investigating Glencore on suspicions of bribery as part of its business affairs. This comes after similar probes in the U.S. and Canada pulled down the company's share price in the past 18 months, the report said.
In mid-2018, the body was said to be preparing a formal probe into Glencore's dealings with Israeli billionaire Dan Gertler, who allegedly used his relationship with former Congo President Joseph Kabila to act as middleman for mining deals in the country.
In a statement to the news agency, Natasha Harrison, Boies Schiller's managing partner in London, said that the latest probe will help strengthen the investors' claims. Harrison added that the firm has secured litigation funding and provision for adverse costs in the past months.
A Glencore spokesperson declined Bloomberg News' request for comment.