Petrobras Judge Allows Lawsuit While Dismissing Some Claims

(Bloomberg) -- An investor lawsuit against Petroleo Brasileiro SA over securities losses stemming from a multi- billion-dollar bribery scheme will go forward, a U.S. judge ruled, dismissing some but not all claims in the case.

The federal judge in Manhattan told the two sides to be ready for trial by February, according to a court order.

Investors accuse executives of the state-owned oil company, known as Petrobras, of publishing misleading financial statements and overstating the quality of internal controls during a multibillion-dollar money-laundering and bribery scheme that rocked Brazil’s economy and cut the value of the oil giant’s securities.

Petrobras argued that the case should be thrown out, saying the company was a victim of the plot, run by contractors and “rogue” politicians with help from a few corrupt employees. The cash traded for political favors came from the company, it said.

The case is In re: Petrobras Securities Litigation, 14- cv-09662, U.S. District Court, Southern District of New York in Manhattan.

To contact the reporters on this story: Linda Sandler in New York at lsandler@bloomberg.net; Patricia Hurtado in federal court in Manhattan at pathurtado@bloomberg.net. To contact the editor responsible for this story: David Glovin at dglovin@bloomberg.net.
 

Copyright 2017 Bloomberg News.

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