U.S. Markets closed

BSGR sues billionaire George Soros over loss of Guinea iron project

FILE PHOTO -- Business magnate George Soros arrives to speak at the Open Russia Club in London, Britain June 20, 2016. REUTERS/Luke MacGregor/File Photo

(Reuters) - Mining company BSG Resources (BSGR) on Friday filed a lawsuit in federal court in New York accusing financier George Soros of scuttling an iron ore deal in Guinea, claiming $10 billion in damages.

BSGR, which is controlled by Israeli billionaire businessman Beny Steinmetz, accused Soros and his controlled entities of manipulating the government of Guinea and elected officials and other misconduct to strip BSGR of mining contracts in Guinea in 2014.

Israeli authorities put Steinmetz under house arrest on Dec. 19 after accusations that he paid tens of millions of dollars to senior public officials in Guinea to advance his businesses. He was released in January without being charged.

Soros fabricated defamatory statements about BSGR's involvement in corruption, the company said in the complaint.

"Soros was motivated solely by malice, as there was no economic interest he had in Guinea," BSGR added.

Michael Vachon, a spokesman for Soros, did not respond to requests for comment, made outside of regular business hours.

The case is 1:17-cv-02726 in U.S. District Court in the Southern District of New York.


(Reporting by Divya Grover in Bengaluru; Editing by Cynthia Osterman and Bill Rigby)