SEC Files Major ESG Case Alleging Exchange Act Violations: Client Alert Digest


Summary

This client alert digest discusses the Securities and Exchange Commission's (SEC) complaint, filed April 28, 2022, alleging violations of antifraud and reporting requirements under the securities laws by Vale S.A., a Brazilian mining company. These charges stem from false and misleading statements made by the company relating to the safety of its dams, before the collapse in 2019 of its Brumadinho dam. This is the SEC's first major ESG enforcement action after the formation of its Climate and ESG Task force in March, 2021. This case, along with the SEC's recent proposed rules relating to climate change disclosure, may set the tone for ESG disclosure going forward. This client alert digest includes links to resource kits, practice notes, templates, and related content in Practical Guidance.