The corporate watchdog has lodged action against mining giant Rio Tinto and two of its top former executives for allegedly inflating the value of Mozambique coal assets acquired in 2011 for $US3.7 billion ($4.65 billion) and sold just three years later for only $US50 million.
Rio Tinto's chief executive, Tom Albanese, and former chief financial officer Guy Elliott have also been named in the suit, which alleges the executives and the company engaged in misleading and deceptive conduct.
Former Rio Tinto CEO Tom Albanese was sued by a US regulator over the same alleged breach.
The Australian Securities and Investments Commission launched the legal action on Friday in the Federal Court of NSW.
Former ASIC chairman Greg Medcraft had flagged the action by ASIC last year at a parliamentary hearing after the company, Mr Albanese and Mr Elliott were sued by a US regulator over the same alleged breach.
ASIC alleges that Rio Tinto engaged in misleading or deceptive conduct by publishing statements in its 2011 annual report, signed by Mr Albanese and Mr Elliott, misrepresenting the reserves and resources of its subsidiary Rio Tinto Coal Mozambique.
More to come
Darren is the mining and agribusiness reporter for The Age and The Sydney Morning Herald.
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