Summary
Southern Copper Corp (SCCO) filed an 8-K on September 28, 2009, reporting a significant development in a long-standing labor share litigation in Peru. A civil court has issued a favorable decision suspending the enforcement of a previous Peruvian Supreme Court ruling that ordered SCCO's Peruvian branch to deliver a substantial number of "labor shares" and dividends to approximately 800 former employees. This civil court decision allows SCCO to present further legal arguments, specifically its assertion that the shares and dividends were already distributed in compliance with prevailing profit-sharing laws. The company continues to assess the potential financial impact and the ultimate enforcement of the Supreme Court's decision. This development is a positive step for Southern Copper, as it provides a temporary reprieve and an opportunity to contest the Supreme Court's earlier judgment. Investors should monitor future filings for updates on the ongoing legal proceedings and their potential financial implications for the company.
Key Highlights
- 1Southern Copper Corp (SCCO) filed an 8-K on September 28, 2009, regarding a labor share litigation in Peru.
- 2A Peruvian civil court has suspended the enforcement of a Supreme Court decision from June 5, 2009.
- 3The Supreme Court decision had ordered SCCO's Peruvian branch to issue 'labor shares' and dividends to former employees.
- 4SCCO's Peruvian branch asserts that the labor shares and dividends were already distributed according to the law.
- 5The civil court's decision allows SCCO to present further legal means to prove its assertion.
- 6The company is still analyzing the potential financial impact and enforcement of the Supreme Court's ruling.
- 7This filing provides an update on a legal matter previously disclosed in SCCO's 2008 10-K and subsequent 10-Q filings.