Bre-X: The Battle For Busang

This case tells the incredible story of what may be viewed as one of the century's most infamous stock scams: the rise and collapse of the Canadian mining firm Bre-X, based on doctored reports of a gold strike in Indonesia said to have been worth $70 billion. The case raises the question of what, if anything, could have been done by Indonesian or Canadian regulators to prevent, or soften the impact, of a stock stampede which saw the value of a Bre-X share rise from two cents to more than $200--before collapsing in the face of what appeared to be evidence of fraud.

This teaching case is available for purchase here (Part A) and here (Part B).

Authored by Samuel Pasow.

Published by HKS.