Brazilian Oil Giant Petrobras Caught in Corruption Scandal: Class Action Lawsuit Filed in New York

The Brazilian state-controlled oil multinational whose shares are listed on both Brazil's stock exchange (Bovespa), and the New York Stock Exchange (NYSE), has admitted involvement in Brazil's biggest ever corruption scandal. 

Since December 2014, dozens of shareholders who purchased shares through the NYSE, have started court proceedings in the Federal Court of New York, seeking damages against Petrobras for alleged violations of the federal securities laws under the Securities Exchange Act of 1934. 

Shares prices collapsed by 60% over a four month period after the judicial authorities of Brazil concluded that illegal operations of approximately US$80 billion had taken place.

The Court of New York is to fix a date in August 2015 for the first hearing thereby initiating a process to seek an amicable settlement between the Petrobras and its shareholders.

At a later stage shareholders could ask for the execution of the judgments on Brazilian territory.

Giambrone’s lawyers are in the process of analysing the position of clients in relation to potential claims against Petrobras.

For more information or an initial review of your case contact: clientservices@giambronelaw.com

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                                                                                                                                   Head of Brazilian Desk