Grupo México, Mining Mogul Accused of Exploiting Southern Copper

Grupo México SAB de CV, which dominates Mexico’s mining, construction, and rail industries, has been hit with a lawsuit accusing the company and billionaire CEO German Larrea Mota-Velasco of exploiting a subsidiary.

The mega-conglomerate engineered major deals worth more than $1 billion on terms that ripped off Southern Copper Corp., a wholly owned subsidiary, while benefiting Grupo México and Larrea, Mexico’s second-richest man, according to a shareholder derivative complaint unsealed April 29 in Delaware Chancery Court.

Larrea is worth $17 billion. Grupo México owns 89 percent of Southern Copper, which announced disappointing earnings the same day.

The heavily ...