MercoPress. South Atlantic News Agency
Petrobras faces major class action lawsuit in US next February
The investors of the company argue that Petrobras had window dressed the company’s accounts in order to make them appear more attractive 
Petrobras claims to be a victim of a plan carried out against the company by contractors and politicians with the help of some corrupt employees 
Judge Rakoff has informed the Brazilian company that the trial against it by the investors would not begin later than February 1. Brazil's state-run oil producer Petrobras, said in a securities filing on Friday that its motion to dismiss a class-action lawsuit in the United States had been denied by the court. Petrobras said part of the complaint against the company relating to bonds issued in the United States in 2012 was denied.
The person responsible for overseeing the case against the investors is Judge Jed Rakoff from the US. Mr. Rakoff has informed the Brazilian company that the trial against it by the investors would not begin later than February 1.
Petrobras indicated that the judge had thrown out some claims against the company such as the 2012 bond issuance in the US. Further, the judge has also passed on the requests related to the acquisition of shares in Brazil to arbitration. The Judge dismissed the 2012 bond issuance claims, claiming the investors had taken too much time to sue for the company.
The Brazilian state run company was accused of colluding with a cartel of construction firms last year, inflating the value of construction contracts and using the kick-backs to funnel into pockets of local politicians and former company executives.
The investors of the company argue that Petrobras had window dressed the company’s accounts in order to make them appear more attractive. These investors also believed the Petrobras had overstated the quality of internal controls during the corruption scandal, which was believed to have started in the year 2003. Investors of the company thus lost valuable money from their investments in the Brazilian oil major.
Meanwhile, Petrobras has denied all these allegations and claimed itself to be a victim of a plan carried out against the company by contractors and politicians with the help of some corrupt employees. The Brazilian prosecutors also agree with this claim of the state run company of it being a victim.
Petrobras thus believes that this case against the company by the investors, is baseless and must be thrown out. The company also indicated that it would continue to defend itself. “We look forward to aggressively litigating our case and working to achieve a substantial recovery for harmed shareholders.”
Top Comments
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Read all commentsPBR's trouble is only beginning in the USA. When the dust settles there's a very good chance they won't be able to function as a private company.
Jul 13th, 2015 - 02:33 pm 0I also think the litigation and SEC investigation will link Dilma and Lula. They won't be shielded in the USA.
It is amazing that Argentina, Brazil and Venezuela's last decade of “prosperity” has all be shown to be a sham yet there are still a bunch of dumb@sses that believe the propoganda.
Oh dear, the shit is about to hit the fan and the shitters won't be able to avoid the spray.
Jul 13th, 2015 - 06:48 pm 0DumbAss. The Chief Crook and thousands of co-conspirators are about to be slammed up (well early in 2016 anyway).
GOOD.
I love tweaking you political neanderthals, with your knee-jerk reactions, that are based solely on humble personal and uninformed opinions. Like one of you emotive blusterers refers to himself as a 'conservative' while constantly lambasting the impoverished for their unfortunate circumstances. While completely oblivious of British conservative pragmatism whose central feature was 'noblesse oblige'
Jul 18th, 2015 - 04:23 pm 0To wit 'One-nation conservatism' originated with Benjamin Disraeli, who was a favorite of Richard Nixon. “As a political philosophy, one-nation conservatism reflects the belief that societies exist and develop organically, and that members within them have obligations towards each other. There is particular emphasis on the paternalistic obligation of the upper classes to those classes below them. https://en.wikipedia.org/wiki/One-nation_conservatism
So other than your gleeful speculation, it's hard to imagine how the former and present president have suddenly in their later years become so flawed when there is not even some much of a hint of impropriety in their past and it is their party that has instigated the most recent anti-corruption laws.
”Brazil’s law is “hard to prove,” according to Tathiana de Carvalho Costa, a lawyer at Carvalho Costa Advogados, in Rio de Janeiro. She said prosecutors would need to present documents or other strong proof showing a direct link between Mr. da Silva’s alleged influence peddling and the contracts and financing that allegedly resulted from those efforts.“ Wall Street Journal
https://en.wikipedia.org/wiki/One-nation_conservatism
Here's the definitive definition: 'Brazil's Criminal Code defines influence peddling as ”requesting, requiring, charging or obtaining, for oneself or others, benefits or promise of benefit, practiced by a public servant in the exercise of the function, which may attract sentence of 2 to 5 years imprisonment.”
https://en.wikipedia.org/wiki/One-nation_conservatism
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