US Judge Hears Investors Claiming to Be Defrauded by Petrobras

    Petrobras rig

    Petrobras rig Brazil’s state-run oil company Petrobras urged a U.S. judge to throw out an investors’ class action lawsuit claiming a multibillion-dollar bribery scandal overvalued it for years.

    Speaking at a hearing in federal court in New York, Petrobras lawyer Roger Cooper said the company itself was a victim of the fraud, which he said was orchestrated by a handful of individuals.

    But the investors filing the case, who claim US$ 98 billion of its stocks and bonds were artificially inflated by Petrobras overstating the value of some of its major projects, argued there is no way company executives could have been in the dark.

    “This is a vast fraud taking place possibly over two decades, and everyone is asking the court and the public to believe, ‘We didn’t know,'” said Jeremy Lieberman, a lawyer for the investors. “The question we would ask is: can they be serious?”

    The hearing on the lawsuit, filed in December, came amid the largest corruption investigation in Brazilian history into what authorities say was a years-long scheme involving price-fixing, bribery and political kickbacks.
    Petrobras rig Prosecutors have charged dozens of senior executives at a number of Brazilian companies sending shockwaves through the country’s economy and sending President Dilma Rousseff’s popularity to all-time lows.

    U.S. District Judge Jed Rakoff did not rule on Petrobras’ request but said he would do so within two weeks. The judge asked several questions during the hearing but did not indicate how he was leaning.

    Cooper told Rakoff that the company was unaware of the alleged fraud, even if a few high-ranking employees were involved. “The knowledge of those co-conspirators cannot be imputed to the company,” he said.

    The probe has continued to widen, with a prosecutor in Brazil saying on Tuesday it could extend to utility Eletrobrás and several foreign companies.

    Brazilian authorities last week detained the head of construction company Odebrecht SA, and the CEO of builder Andrade Gutierrez.

    A British pension fund, Universities Superannuation Scheme, is leading the plaintiffs, who seek to bring claims on behalf of anyone who purchased U.S. shares or bonds in Petrobras from January 2010 to March 2015.
    Petrobras in April took a US$ 17 billion write-down partially related to the bribery scandal. Lieberman said the investors remain skeptical that the losses tied to the scheme have been fully divulged. The company’s value has collapsed to approximately US$ 60 billion, after nearing US$ 300 billion in 2008.

    Rousseff in Washington and Silicon Valley

    Ambassador Carlos Antonio Paranhos, Secretary-General of Brazil’s Ministry of Foreign Relations, that Brazilian President Dilma Rousseff’s visit to the United States should mark a revival of bilateral political dialogue between the two countries. After alleged US spying on Brazil in 2013, Rousseff canceled a state visit to the country.

    According to Paranhos, the episode has been overcome and should not be raised again. He pointed out that the official presidential visit to the US will advance business partnerships.

    “We’ll be talking to business leaders to show that Brazil is taking the austerity policy and infrastructure investment program seriously. Brazil is interested in driving more US investment in this area and expanding exports to the US,” he said.

    Two weeks ago, Brazil’s government announced a new private concessions plan for projects in infrastructure and logistics worth about US$ 64 billion. During her visit to the US, Rousseff and her delegation will promote business opportunities to US business leaders.

    Another discussion according to Paranhos is on Brazil potentially joining Global Entry, a fast-track border clearance program for regular travelers (such as business people) arriving in the United States. Under the proposal, US authorities would pre-approve qualified travelers so they can simply show their passport to a scanner upon arrival. Negotiations to extend the system to Brazilians are well under way, according to Paranhos.

    The two countries will also sign a declaration on greenhouse gas reduction commitments as a contribution to the success of the UN Conference of the Parties on Climate Change (COP-21) in Paris in December.
    Dilma Rousseff will attend appointments with business owners in New York and a work meeting with President Barack Obama in Washington. The trip ends with visits to the headquarters of Google, Inc., NASA’s Research Center, and Stanford University in California. Her return to Brazil is on July 2.
    Mercopress/ABr

    Tags:

    • Show Comments (1)

    • Punch Animation OTC:URBT

      I think this is a fascinating blog with fascinating matters. Have you heard about Punch Animation? This company has achieved a million dollars in financing and it is just the right time to invest in it. Under the stock symbol, URBT, it’s Trading Over the Counter for pennies which might create extraordinary profits for shareholders that purchase now! Punch Animation is currently developing its first computer animated tv series that will signify the future of animation. The individual that is in charge of Punch Animation is Joseph Collins who is a powerhouse expert in the animation industry. Ultimately, the key focus of Punch Animation is the production of animated TV shows and motion pictures for distribution worldwide.

      https://www.punchtvstudios.com/blog/punch-animation-inc-stock-symbol-urbt/

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil’s Lula Has Become a Tough and Successful Globe-Trotting Salesman

    Brazilian President Luiz Inácio Lula da Silva said that discussions for a Free Trade ...

    Brazil’s Itaíº Bank Celebrating a C Rating by Moody’s

    Moody’s, a leading international rating agency, has upgraded Banco Itau’s financial strength rating from ...

    USA for Innovation Urges Prompt Action Against Brazil for Patent Breaking

    The American organization USA for Innovation yesterday urged the United States Trade Representative’s office (USTR) to immediately ...

    Nuclear Conference Presided by Brazil Ends All Talk and No Teeth

    A conference at the United Nations to review the Nuclear Non-proliferation Treaty (NPT) ended ...

    Rayfran Sales Confesses He Killed US Nun

    A military helicopter arrived in Altamira from Anapu with Rayfran das Neves Sales aboard. ...

    Brazil's Bovespa

    78% Up in 2009: China and Commodities Surge Boost Brazil Market

    The Brazilian stock market, Bovespa, went up, this Thursday, October 15, for the fifth ...

    Brazil Counting on US$ 18 Billion in Foreign Investment This Year

    Foreign direct investments in Brazil amounted to US$ 859 million in February, according to ...

    Dorival Caymmi sings with Carmen Miranda in Rio de Janeiro

    Caymmi, the Man Who Best Sang Brazil’s Seas, Is Dead at 94

    Brazilian composer and singer from Bahia Dorival Caymmi died this Saturday, August 16, in ...

    Brazilian leader Lula

    Brazil President Advises His Countrymen: Keep on Shopping

    Brazilian President, Luiz Inácio Lula da Silva, said that no work in the Growth ...