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 firstname.lastname@example.org; Patricia Hurtado in federal court in Manhattan at email@example.com. To contact the editor responsible for this story: David Glovin at firstname.lastname@example.org.
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