A material part is supported, but the published wording goes beyond the record.
Vale misled investors about dam safety by relying on fraudulent stability certificates and stating that all its dams were certified stable, as the SEC charged in April 2022.
obtained numerous fraudulent stability certificates
- About
- Vale S.A.
- Claim made by
- US Securities and Exchange Commission, regulator statement
- Published
- 28 April 2022
- Evidence score
- 72 How it was scored
- Last reviewed
- 25 October 2026
Why this label
The SEC alleged that Vale obtained fraudulent stability certificates and told investors that all of its dams were certified stable, when the Brumadinho dam did not meet international safety standardsS1. The SEC repeated the core of this in its settlement releaseS2. These are allegations. Vale settled without admitting or denying the settled claimsS3. The SEC agreed not to oppose Vale's motion to dismiss all claims that Vale acted with fraudulent or reckless intentS3. No US court made a finding on the facts. The statement that Vale's reports said its dams were certified stable rests on the SEC's reading of Vale's own reports. The stronger wording that Vale knowingly misled investors goes beyond what any adjudicated record shows.
Current procedural position
SEC civil complaint filed in April 2022S1. Settled on 28 March 2023 without admitting or denying the claims, subject to approval by the US District Court for the Eastern District of New YorkS2S3. The approval order was not reviewed for this record.
Record supporting the assessment
obtained numerous fraudulent stability certificates
did not meet internationally-recognized standards for dam safety
Vale’s public sustainability reports assured investors that all of its dams were certified as stable.
Conflicting or limiting record
Under the agreement, without admitting or denying the settled claims,
the SEC will not oppose Vale’s motion to dismiss all claims that the Company acted with fraudulent or reckless intent regarding its disclosures.
Evidence score: 72 of 100
The score grades how well the record establishes this assessment. It is not a score of Vale S.A.. Score = source authority + directness + corroboration + procedural accuracy + currency + reproducibility.
| Component | Points | Max | Reason |
|---|---|---|---|
| Source authorityIs the source competent to establish the proposition? | 24 | 30 | The SEC is competent to bring the charge, but its releases state allegations, not findings. |
| DirectnessDoes the source state the proposition or only discuss adjacent facts? | 17 | 20 | The SEC releases state the certificate and disclosure allegations in plain terms. |
| CorroborationDo independent records support the same material point? | 9 | 15 | The Brazilian criminal charges make a related allegation, but no court has ruled on either. |
| Procedural accuracyDoes the record settle the procedural state the claim describes? | 6 | 15 | The case was settled without admission and the fraud intent claims were not pressed. |
| CurrencyHas the record been checked against later developments? | 7 | 10 | Checked against the settlement, but the court approval order was not read. |
| ReproducibilityCan a reader locate the passage and repeat the assessment? | 9 | 10 | Both SEC releases and Vale's 6-K are public on sec.gov. |
| Total | 72 | 100 |
Timeline
Related cases
- Securities and Exchange Commission v. Vale S.A.US District Court for the Eastern District of New York. Civil. Not stated in the sources read.Stage: Settled on 28 March 2023 without admitting or denying, subject to court approval
Responses
- Vale S.A., 28 March 2023: Vale said it settled without admitting or denying the claims and continues to remediate the Brumadinho damage.S3
Revision history
- Assessment first published with label Partly supported.
Have a record that changes this assessment? See corrections and responses.
Sources
- S1Tier A SEC Charges Brazilian Mining Company with Misleading Investors about Safety Prior to Deadly Dam CollapseUS Securities and Exchange Commission. Regulator press release. 28 April 2022.States the SEC's allegations about certificates and disclosures. These are allegations, not findings.
- S2Tier A Brazilian Mining Company to Pay $55.9 Million to Settle Charges Related to Misleading Disclosures Prior to Deadly Dam CollapseUS Securities and Exchange Commission. Regulator press release. 28 March 2023.Supports the settlement amounts and the need for court approval. It does not state an admission.
- S3Tier B Vale announces agreement with the United States Securities and Exchange CommissionVale S.A.. Company filing. 28 March 2023.Company statement on the no admission term and the SEC's agreement not to oppose dismissal of fraud intent claims.
Other claims about Vale S.A.
- Unresolved62Brazilian federal prosecutors charged that Vale and TUV SUD colluded to issue false stability declarations for the Brumadinho dam, and that 16 people committed qualified homicide.Press report, 26 January 20234 records citedSafety
- Supported88Vale said in March 2023 that it would pay US$55.9 million to the SEC without admitting or denying the settled claims.Company statement, 28 March 20232 records citedDisclosure
- Supported73Vale said in February 2021 that it signed a global settlement for Brumadinho with the State of Minas Gerais and public authorities worth about BRL 37.7 billion.Company statement, 4 February 20212 records citedSafety