Tuesday, February 2, 2016

Petrobras faces class-action lawsuit in bribery and political kickbacks scandal

The large Brazilian oil company has been accused of inflating the value of more than $98bn of its stock and bonds through years of corruption

‘Petrobras was a massive company with investors around the globe,’ the judge wrote of the Petrobras lawsuit.

A US judge has ordered Petrobras, the state-run Brazilian oil company, to face class-action litigation by investors seeking to recoup billions of dollars in losses stemming from a bribery and political kickback scandal.

In a decision made public on Tuesday, US district judge Jed Rakoff in Manhattan certified two classes of plaintiffs, saying their claims are similar enough to be pursued as groups.

Petrobras, whose formal name is Petroleo Brasileiro SA, has been accused of inflating the value of more than $98bn of its stock and bonds through years of corruption.

Its market value has plunged to below $20bn from nearly $300bn fewer than eight years ago