Investors in Petrobras asked a judge in a New York court on Tuesday to rule that the corruption-plagued state oil company of Brazil was in violation of US securities laws, according to Reuters.
Plaintiffs’ lawyers argue that the company’s top executives knew of the multibillion-dollar bribes-for-inflated-contracts scheme which has already seen numerous Petrobras employees, outside contractors and politicians convicted and jailed.
They claim that the company, a huge player in offshore oil production, failed to inform investors of the corruption-related losses which contributed to a plunge in the stocks’ value.
The investors want US District Judge Jed Rakoff in Manhattan to rule that the company is liable for the actions of its employees.
A hearing for a partial summary judgement on some of the plaintiffs’ claims is set for August 5. Full trial is set for September 19, barring an earlier settlement.
