(Updates with Glencore's response to a request for comment in the penultimate paragraph.)
Radiant World and Sapphire Minmetals have sued Glencore in Singapore, seeking $2 billion in damages, Bloomberg reported Tuesday, citing a phone interview with Sapphire Chairman Rakesh Sethi.
Radiant World and Sapphire are separate companies but closely related and are both subject to a $499 million global freezing order imposed by a London court at the request of a fund managed by Jefferies Financial Group (JEF). That fund alleged the companies had falsified iron ore invoices as part of a "fraudulent scheme," according to the report.
Radiant World's lawyers had previously sent a letter to Glencore claiming the company had lost $1.4 billion as a result of Glencore's actions, according to an earlier Bloomberg report.
"Glencore has confirmed evidence that these companies sent falsified invoices and contracts as well as fabricated emails, which they fraudulently claimed to have received from Glencore personnel, to a number of financial institutions," Glencore said in a statement. "We take these issues seriously and are conducting a review of our historic business activities with Radiant World, Sapphire Minmetals and associated companies. We have stopped doing business with these companies and have exited all obligations."
Radiant World and Sapphire Minmetals didn't immediately reply to requests for comment from.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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