Summary
Southern Copper Corporation (SCCO) announced a significant development in a long-standing labor share litigation case in Peru. On June 3, 2009, SCCO's Peruvian Branch received a decision from the Peruvian Supreme Court rejecting its 2000 appeal. This decision affirms a prior adverse ruling from lower civil courts, mandating the delivery of a substantial number of "labor shares" and associated dividends to approximately 800 former employees. While the Supreme Court's order is clear, Southern Copper maintains that these shares and dividends were already distributed in compliance with the profit-sharing laws in effect at the time. The company is currently unable to determine the precise enforcement mechanism of this ruling or its potential financial impact, but it reserves the right to prove its previous distribution claims through legal means. Investors should monitor further developments regarding the enforcement and financial implications of this ruling.
Key Highlights
- 1Peruvian Supreme Court rejects Southern Copper's (SCCO) 2000 appeal in a labor share litigation case.
- 2The ruling affirms a prior adverse decision from lower civil courts.
- 3SCCO's Peruvian Branch is ordered to deliver "labor shares" and dividends to approximately 800 former employees.
- 4The litigation originated in 1996, seeking delivery of shares and dividends from the Peruvian Branch.
- 5Southern Copper asserts that the labor shares and dividends were already distributed in accordance with applicable profit-sharing laws.
- 6The company is currently unable to ascertain the enforcement method or the financial impact of the Supreme Court's decision.
- 7SCCO reserves the right to prove its assertion of prior distribution through all legal means.